COST ACCOUNTING 281 



Inventory Record, as explained in Chapter 6, and as pre- 

 sented in Illustration 27. 



5. Calculate and enter interest on investment for the 

 year, as follows : 



(a) Calculate interest on equipment and make an entry 

 in cash journal, debiting Equipment Expense and credit- 

 ing Interest on Investment. 



(b) If a landlord, calculate interest on buildings and 

 charge Building Expense, crediting Interest on Investment. 

 Interest on land is charged at the beginning of the year 

 as explained under " Interest on Land," in this chapter. 



(c) Calculate interest on livestock, charging the several 

 respective livestock accounts, crediting Interest on' Invest- 

 ment. 



(d) Calculate and enter interest on any special equip- 

 ment or buildings not covered by (a) and (b) above. This 

 includes silos, special dairy equipment and similar units. 



6. Calculate and enter depreciation on property for the 

 year as follows: 



(a) Calculate depreciation on equipment and make an 

 entry in the cash journal debiting Equipment Expense and 

 crediting Equipment. 



(b) If a landlord, calculate the depreciation on build- 

 ings, debiting Building Expense and crediting Buildings. 



(c) Calculate and enter depreciation on any special 

 equipment or buildings not covered by (a) and (b) above. 

 This includes silos, special dairy equipment and similar 

 units. 



7. Post everything that has been entered in the cash 

 journal up to this point. 



8. Charge out the feed consumed by livestock during the 

 year by posting the values shown in the feed record to 

 the debit of the several livestock accounts and to the credit 

 of the crop accounts. 



9. Post from the labor and horse labor records to the 



