SUBDIVISION OF CAPITAL ACCOUNT 57 



Sept. 6, Received $25 from sale of fruit and vegetables. 



Sept. 20, Sold cabbage for $400 cash. 



Oct. 1, Paid cash for labor $25. 



Nov. 1, Paid cash for labor $25. 



Nov. 1, Paid for miscellaneous items $30. 



Nov. 1, Sold all the swine for $900. 



Nov. 1, Paid $240 for six months' interest on mortgage note. 



Nov. 1, Paid $1800 as part payment on mortgage note. 



Nov. 28, Sold some corn for $700 cash. 



Dec. 1, Paid cash for labor $30. 



Jan. 3, 1917, Paid for miscellaneous items $35. 



Feb. 15, Paid for taxes $80. 



Feb. 21, Paid for fire insurance premium $20. 



2. From the ledger accounts created in problem 1 above, 



(a) Close the nominal accounts into Loss and Gain account. 



(b) Close Loss and Gain account into Capital account. 



(c) Bring down the balances of Capital and Cash accounts on 

 March 1, 1917. 



(d) Prepare a Statement of Resources and Liabilities as of 

 February 28, 1917, and a Loss and Gain Statement for the year 

 ended February 28, 1917, noting that the latter is practically a 

 copy of the Loss and Gain account in such a simple case as this. 



Note. Closing an account or bringing down a balance always 

 includes the drawing of the necessary single and double lines. 



(e) Compare the ledger accounts and statements with the 

 ones prepared for Illustrative Problems 2 and 3 of Chapter II. 

 Be prepared to discuss orally any points of similarity or dif- 

 ference noted. (The instructor should lead a discussion of these 

 points in class while students have all papers to examine.) 



3. Using the same ledger as in problem 1 above, Mr. Woods 

 continues his business for the second fiscal year beginning March 

 1, 1917. 1 You are asked to record the year's transactions which 

 follow : 



1 The entries in the second year are made in the same accounts that 

 were used in the first year, nominal accounts receiving their next 

 entries on the first line below the double lines made in closing. Re- 

 source and Liability items are entered in the same way they would 

 have been, had a new period not begun. 



