SPECIAL ACCOUNTS AND ENTRIES 215 



Oct. 26. Paid Roy Wade $20 on account. 



Oct. 31. Sold some shotes for $300 cash. 



Nov. 6. Bought sundry household supplies, $15. 



Nov. 15. Sold poultry for $18 cash. 



Nov. 16. Donated $25 to Red Cross work. (General Expense.) 



Dec. 1. Sold 400 bu. corn at $1.20 for cash. 



Dec. 2. Bought a half interest 1 in a self feed corn sheller 

 for $42.50 cash. 



Dec. 15. Paid $250 to redeem note held by landlord due to- 

 day. 



Dec. 20. Paid Roy Wade cash to balance his account. 



Dec. 20. Paid $30 cash for household supplies. 



Dec. 31. The household record shows the following commodities 

 turned over to the house during October, November and Decem- 

 ber: poultry, $10; eggs, $12; milk, $30. 



Dec. 31. During the three months, the household has sold for 

 cash part of the products as follows: eggs, $3; butter, $13. 



Dec. 31. Mr. Fay places the value of his services as a laborer 

 at $600 for the year. 



Dec. 31. Inventories taken on this date showed the following 

 values: household furnishings, $500; horses, $1200; cattle, $600; 

 hogs, $300; poultry, $30; wheat, $200; oats, $300; corn, $1250; 

 hay, $330. Equipment has depreciated 10% during the year 

 (diminishing value method). 



(a) Post to the 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 closing, which may also be used 

 as a Statement of Resources and Liabilities as of Dec. 31, 1917. 



(f) Prepare a Farm and Individual Income Statement for 

 the year. 



1 This requires a debit to Equipment account for only $42.50. If the 

 comparative inventory record were in use, the machine would be en- 

 tered as a matter of record, with proper notation to indicate the 

 other half -owner. 



