158 FARM ACCOUNTING 



The last entry above is made after posting the other en- 

 tries and finding the balance remaining in Loss and Gain 

 account to be closed into Capital. The amount can be cal- 

 culated on a piece of scratch paper, however, and thus 

 permit all the closing entries to be made at one time. 



After posting the closing journal entries, the several 

 nominal accounts should be ruled off and the balance of 

 Capital account brought down below the double lines. 



ILLUSTRATIVE PROBLEMS 



1. (a) Make entries in simple journal ajid cash book for the 

 year's transactions. 



(b) Post to the ledger leaving enough space for entries of 

 problem 2 below, and take a trial balance. 



(c) Make and post the necessary journal entries, closing the 

 proper accounts into Loss and Gain account and the latter into 

 Capital account. f 



(d) Rule off the accounts, and bring down the necessary bal- 

 ances. 



(e) Take a trial balance after closing. The inventories at 

 the beginning and close of the period are to be recorded in the 

 comparative inventory record. 



Feb. 1, 1916. W. L. Miller begins keeping accounts on the 

 farm, owing $5000 on a mortgage note and investing Cash 

 $2500, land valued at $12,000, buildings worth $5000, and other 

 property as detailed below. Cattle: 4 milch cows at $60 each; 

 2 calves at $25 each; 2 two-year-olds at $35 each. Swine: 1 

 boar $45; 15 sows at $35 each; 30 pigs at $12 each. Horses: 

 6 work and driving, at $150 each; 2 colts at $90 each. Poultry: 

 100 chickens, all kinds averaging $0.90 each; 4 turkeys averag- 

 ing $1.60 each. 



Equipment: 2 farm wagons complete with box and side- 

 boards at $76.35; 1 handy wagon and rack at $37.50; 1 spring 

 wagon, $60.95; 1 light buggy with pole and shafts, $65; 1 four- 

 cylinder automobile, $250; 5 sets double work harness, at $31.25; 

 1 set double driving harness, $25; 1 set single driving harness, 



