162 FARM ACCOUNTING 



rect, you are ready to proceed with the succeeding year's rec- 

 ord. 



(a) Make entries in simple journal and cash book for the 

 year's transactions: 



(b) Post to the ledger and take a trial balance, using the 

 same ledger accounts as in problem 1 above when possible. 



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

 proper accounts into Loss and Gain account, and the latter into 

 Capital account. 



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

 ances or inventories. 



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

 close of the year are to be placed in the space reserved for the 

 third inventory in the comparative inventory record. 



Feb. 2, 1917. He buys one-half barrel machine oil for $7 

 cash. 



Feb. 28. Buys one corn planter, $32 cash. 



Mar. 1. Sells 100 bushels of. wheat at $2. Sells 210 bushels 

 of oats at $0.60. Pays $150 interest on mortgage note for six 

 months ended today. He also pays $500 in reduction of the prin- 

 cipal. 



Mar. 16. Sells his walking plow for $6 l and buys a new gang 

 plow for $53 cash. 



Mar. 28. Sells some shotes (2500 Ibs.) at $14 per cwt. 



Apr. 1. His son Wayne withdraws from college and agrees 

 to work on the farm for $25 in cash per month and his board, 

 which is valued at $15 a month. The regular wage is $40 a 

 month and board. (No entry is necessary until the close of the 

 month or until he draws some cash on account.) 



Apr. 22. Receives cash from sale of eggs, $12. 



Apr. 30. Sells to Cooperative Creamery on account 300 Ibs. 

 butter fat at $0.35. 



Apr. 30. Wayne is credited with monthly wage including 



1 It is necessary only to credit equipment and debit cash with $6 

 for the sale of the old plow. The entry for depreciation is supposed 

 to take care of the loss. 



