SPECIAL ACCOUNTS AND ENTRIES 163 



board. 1 (Dr. Labor $25; Cr. Wayne $25; also Dr. Labor $15; 

 Cr. Household $15.) 



May 10. Receives a cheek from Cooperative Creamery $298.50 

 in full of account. 



May 31. Entry required for services of Wayne in May. 



June 16. Pays $40 cash for some new household furnishings 

 1 rocking chair and 1 rug for sitting-room. 



June 30. Entry required for services of Wayne in June. 



July 3. Wayne draws $20 cash. 



July '15. Sells eight tons timothy hay at $17 a ton. 



July 31. Wayne is credited with July labor. 



Aug. 18. Sells 1600 bu. wheat to the Mutual Elevator Co., at 

 $2 a bushel and receives $1200 in cash and a $2000 note, payable 

 in 90 days from Aug. 18, with interest at 6% per annum. 



Aug. 18. He discounts the $2000 note of the Mutual Elevator 

 Co. at the bank, which deducts $30 discount and gives him credit 

 in his checking account for the proceeds. (Debit Cash and credit 

 Notes Receivable $2000 on the cash receipts side. Debit General 

 Expense, and credit Cash for $30 on the cash payments side.) 



Aug. 20. He pays L. List $780, of which $500 is in payment 

 of note of Mar. 1, 1916, $30 for interest on same, and $250 to 

 settle the open account. (The note did not draw interest, but 

 it and the open account have remained unpaid so long, that the 

 $30 is contributed in lieu of interest.) 



Aug. 31. Wayne is credited with August labor. 



Sept. 1. Pays $135 interest on mortgage note for 6 months 

 ended today. 2 



Sept. 1. Pays $2500 in reduction of the principal of the mort- 

 gage note. 



Sept. 16. Pays for sundry labor during threshing season 

 $7. 



Sept. 16. Wayne decides to return to college, so is credited 



*It should be noted that Wayne does not draw any cash at this 

 time. 



2 Note that this interest payment is $15 less than the preceding ones 

 on March 1 and September 1 of each year. It is due to the fact that 

 $500 was paid off on March 1, 1917, leaving only $4500 to draw in- 

 terest at 6% from March 1 to September 1, 1917, 



