212 FARM ACCOUNTING 



$290; poultry, $25. Equipment has depreciated 10% during the 

 year. 



(a) Post all items to the ledger, allowing enough space for 

 (lie transactions of problem 4 below which require the use of the 

 same ledger accounts. 



(b) Take a trial balance before considering inventories. 



(c) Make the proper entries for inventories. 



(d) Prepare a Loss and Gain account; close and rule off the 

 necessary accounts to show net profit in Fay's Capital account. 



(e) Take a trial balance after closinir. which may also be used 

 as a Statement of Resources and Liabilities. 



(f) Prepare a Farm and Individual Income Statement for 

 the year. 



(g) Prepare a Change of Wealth Statement as of Dec. .'H, 

 1916. 



Note. The cash-journal and ledger accounts used in the Fay 

 problem above are to be used in problem 4 below, the latter 

 being a continuation of the affairs of L. E. Fay for the year 

 ended Dec. 31, 1917. 



Also, the books and accounts of problem 3 above are to be 

 used later in a comparative study and discussion as outlined 

 under problem 2, Chapters VIII and IX. 



4. You are to record in the cash journal (beginning on a 

 new page) the transactions of L. E. Fay for the year ended Dec. 

 31, 1917, which were as follows: 



Jan. 3. Gave two promissory notes to landlord for >'J~>o cadi 

 in payment of year's rent, one due Sept. 1 and one Dec. 15, 1917, 

 without interest. (Debit Rent account.) 



Jan. 3. Paid Roy Wade cash to balance account. 



Jan. 4. Sold some corn for $400 cash. 



Jan. 15. Paid $20 for clothing. 



Jan. 30. Butchered a beef for family use, $70. 



Jan. 31. Took savings bank pass book to bank and had in- 

 terest credited for the six months to Jan. 1st, $7.50. (Debit 

 State Trust & Savings Bank and credit Interest.) 



Feb. 1. Paid interest on mortgage for six months, $60. 



Feb. 3. Sold beef quarter and other parts of the animal butch- 

 ered a few days ago for $30. 



