216 FARM ACCOUNTING 



(g) Prepare a Change of Wealth Statement as of Dec. 31, 

 1917. 



Note. The books and accounts of problems 3 and 4 above 

 are to be used later in a comparative study and discussion as 

 outlined under problem 2, Chapters VIII and IX. 



REVIEW QUESTIONS 



1. State two ways of treating expenses and incomes connected 



with fair exhibits. 



2. In shipping goods to be sold on consignment, what entry is 



made at the time the shipment is sent? Discuss. 



3. What entry is made when the consignee renders his account 



sales T 



4. Discuss the use of the Loss on Auction Sales account. 



5. What entry is made at the time property is destroyed by 



fire? 



6. When the insurance company settles for a fire loss, what entry 



is madef When some salvage is soldt 



7. How is salvage retained for use on the farm treated in the 



books T What is done with the balance of Fire Loss ac- 

 count t 



3. Discuss two ways of recording death of livestock, statin*; tho 

 effect of each on the livestock account and on the Loss 

 and Gain account. 



9. Discuss any special transactions involved in market garden- 

 ing, and crops sold under contract. 



10. What value is considered as the investment in an orchard 



as compared with expenses of operation? 



11. How are incomes and expenses recorded after the orchard 



begins to bear? 



12. When is depreciation figured in an orchard? 



13. Why is it not safe to say off-hand that the fruit that sells 



for the highest price is the one that pays best? 



14. Discuss the use of the Woodland account. The Woodland 



Expense and Income account. 



15. After all standing timber is cut and the woodland is cleared 



for tillage, what entries result f 



