288 FARM ACCOUNTING 



Make the necessary entries in the books of original entry to 

 open the books of Mr. Fay ; and then proceed to record his trans- 

 actions for the year, as detailed below. 



TRANSACTIONS 



Jan. 2. Gave two promissory notes to landlord for $250 each, 

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

 1916, without interest. 



Jan. 3. Spent $10 for household supplies. 



Jan. 16. Sold corn for $140 cash. 



Jan. 31. The household received during the month, $5 worth 

 of dairy products and $1 worth of eggs. (Credit Cattle and 

 Poultry accounts IV-JM -ciivcly.) 



Jan. 31. Butchered for household use, four hogs valued at 

 $50. 



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

 Interest on Investment.) 



Feb. 11. Bought for cash two horses at $150; and two sets 

 of harness at *!!'. .">(. (Harness is considered as equipment.) 



Feb. 16. Received a 60 day note, bearing interest at 6%, 

 from B. E. Adams to settle his account. 



Feb. 28. The household received during the month, poultry 

 valued at 90c, eggs valued at $1.15 and dairy products valued at 

 $8. 



Mar. 4. Sold wheat for $175 cash. 



Mar. 4. Paid cash for groceries, $6. 



Mar. 4. Paid personal taxes, $35.67. 



Mar. 31. The household received during the month, poultry 

 valued at 95c, eggs valued at $1.10 and dairy products valued 

 at $6.40. 



Apr. 3. Paid for repairs to wagon and corn planter, $2.25. 



'The total rent of $500, in this case, is not distributed over the farm 

 elements until the close of the year. This is made necessary by the 

 fact that accounts with fields are not kept in Mr. Fay 's cost system. 

 Accordingly, a distribution at the beginning of the year is not 

 feasible, as it is not known in advance in all cases just what crops are 

 to be planted on certain fields. Debit Rent account with $500. 



