THE LEDGER 35 



Note to Instructor. Problems 2 and 3 above should be pre- 

 served and returned to students after they have worked problems 

 1 and 2 at close of Chapter III. (See (e) Illustrative Problem 

 2, Chapter III.) 



4. Using ledger paper create accounts and the debits and 

 credits necessary to interpret the following transactions in ac- 

 cordance with the bookkeeping abbreviations and principles 

 learned up to the present time : 



March 1, 1916, Harry Mansfield began farming operations 

 with investment as follows: Cash at the farm $30, cash in bank 

 $1320, 2 horses $400, 3 head of cattle $120, equipment $230. 

 He owes his father, E. A. Mansfield, $700 on a promissory note. 



May 20, Drew $50 out of the bank. 



May 28, Paid $35 for labor. 



May 31, Paid $16 for General Expense items. 



June 18, Sold fruit for $10 cash. 



June 30, Sold some hay for $160 cash. 



July 19, Paid $300 for 2 horses. 



July 31, Paid $80 for new equipment. 



Aug. 16, Paid $60 for labor. 



Aug. 31, Paid $70 for General Expense items. 



Sept. 1, Paid $21 interest on note. 



Sept. 1, Paid father $300 on the note, which payment was 

 endorsed on the back of the note. 



Oct. 1, Sold oats to J. M. Drew on account $350. 



Oct. 3, Paid $70 for labor. 



Nov. 19, Received $40 from sale of garden truck 



Dec. 18, Paid $50 for General Expense items. 



Jan. 20, 1917, Sold all the cattle for $175. 



Feb. 18, Sold all the corn crop left for $250. 



Feb. 20, Received $200 from J. M. Drew on account, 



Feb. 20, Paid taxes $35. 



Feb. 25, Paid $40 for labor. 



Feb. 26, Paid $35 for General Expense items. 



Feb. 28, Paid father $300 on the note, taking up the old note 

 and giving a new one for the balance of the principal now due. 



5. From the ledger accounts created in problem 4 above, pre- 

 pare a Statement of Resources and Liabilities, as of February 



