264 FARM ACCOUNTING 



merits using horse labor during the year are charged at a 

 rate of 5 cents for every hour horses were employed there- 

 mi, in order to have each element bear its share of the 

 cost of maintaining equipment. 



The several charges for equipment use can be conven- 

 iently recorded in the yearly horse labor summary as 

 shown in Illustration 53, where the $58 charge to house- 

 hold, the $20.50 charge to swine and other corresponding 

 charges are shown at the foot of the illustration. The 

 total, $200, in the lower right-hand space represents the 

 total cost in connection with equipment. The figures on 

 the bottom line, just mentioned, express debits and credits, 

 and as such may be posted direct from the Horse Labor 

 Summary to the debit of the accounts named at the top.N 

 of Ihr ivxp,.rtive columns, and to the credit of Equipment 

 Expense account. 



The yearly Horse Labor Summary, then, as presented in 

 Illustration 53, may be used at the same time as a posting 

 medium for charging various accounts with the co- 

 horse labor and the use of equipment. It should be noted, 

 therefore, that the amounts in the line next above the bot- 

 tom line represent the cost of horse labor on the farm ele- 

 ments named at the tops of the columns. The sir 



charges for horse labor should equal the amount 

 credited to the Horse account. In the illustration under 

 discussion, $400 is credited to Horse account and $200 to 

 Equipment Kxpen>e account. The latter credit should 

 close Equipment Expense account for the year unless frac- 

 tional parts of a cent are dropped in making calculations. 

 The credit to Horse account closes the latter after the 

 inventory is considered, unless a flat rate of, say, 10 or 

 12 cents an hour is used. 



One very essential point is to be observed in using the 

 horse labor summary as a means of distributing equip- 



