16* FARM ACCOUNTING 



with one-half month's wages for Sept. (The Household is 

 credited for his board for same period.) 



Sept. 17. Gives Wayne $117.50 to close his account and a 

 special allowance of $200 more. (This $200 is not a farm CXJM-HM' 

 and should accordingly be charged to Household.) 



Oct. 1. Some of the twelve-inch trunk tiling in field No. 3 

 being inadequate has been removed and replaced by new fourteen- 

 inch of similar grade. The larger size tile c>>t $86, which was 

 $15 more than the twelve-inch. (Credit cash $85, debit Land $15 

 and debit General Expense $70.) 



Note. Since the labor required in making the change is not a 

 proper charge to Land account under the conditions, it need not 

 be considered here. Mr. Miller did the work, so it will be charged 

 to Labor account as part of the $600 entry at the close of the 

 year. 



Oct. 30. Sells his automobile for $175 cash. 1 



Oct. 31. Sells 250 Ibs. butter fat for $87.50 cash. 



Nov. 18. Sells 20 turkeys for $50 and 60 chickens for $100 

 cash. 



Nov. 30. Sells 200 Ibs. butter fat for $70 ca>li. 



Dec. 28. Pa\ r a trip for >-lf and family. (This is 



not an expense of oprrating the farm.) 



Dec. 31. Pays $10 for extra labor while away. (Debit Labor 

 account.) 



Jan. Ifi, l!M^. Pays fire insurance premium on a one year 



poliry, $15. 



Jan. 31. Pays taxes for the year $1 Hi. 



Jan. 31. An entry is made to adjust labor of Wayne to the 

 standard cost of hired help during the months Apr. 1 to Sept. 16. 



Jan. 31. The proprietor values his labor for the year at $600. 



Jan. 31. The inventories of properties requiring an inventory 

 at the close of the year are indicated by the following facts and 

 figures: Buildings depreciated 5% during the year (diminishing 

 value method). Equipment and Dairy Equipment depreciated 

 10% during the year (diminishing value method). All of the 

 articles of equipment are on hand at the close of the year r^ 



1 It is necessary only to credit Equipment and debit Cash with $175. 

 The depreciation is supposed to take care of the loss. 



