298 FARM ACCOUNTING 



hold 3%, cattle 4%, hogs 5%, horses 4%, sheep 1%, poultry 

 2%, corn 34%, oats, 20%, wheat 1%, hay 13%, pasture 

 10%, equipment (debit Equipment Expense) 1%, miscellane- 

 ous elements, as barn yard, etc. (debit General Expense), 2%. 



4. Calculate, and enter interest on investment for the year as 

 follows: 



(a) Debit Equipment Expense account and credit Interest on 

 Investment with 4% of the value of equipment on hand at the 

 beginning of the year. 



(b) Debit each of the several livestock accounts and credit 

 Interest on Investment with 4% of the value of each of the 

 several classes of livestock on hand at the beginning of the year, 

 except as modified in the following note: 



Note. Since all sheep were sold during the latter part of 

 May, they should be charged (and Interest on Investment cred- 

 ited) with only five-twelfths of the interest ..n *r>0 for a year. 



5. Calculate and enter depreciation on equipment for the year, 

 debiting Equipment Expense and crediting Equipment with 10% 

 of the book value of equipment at the beirinning of the year. 



6. Post all the entries made under instructions 3, 4 and 5 

 above. 



7. Charge out the feed consumed by livestock during the year 

 by making a journal entry for the values shown in the feed 

 record, debiting the several livestock accounts and crediting the 

 crop accounts. Post the items in the entry just made. 



8. Use the labor record as a basis for a journal entry, debiting 

 the several accounts indicated therein and crediting Labor and 

 Exchange Labor, each with the proper amount. 



9. Use the horse labor record as a basis for a journal entry, 

 debiting the several accounts indicated therein and crediting 

 Horses and Exchange Labor, each with the proper amount. 



10. Post the entries made under instructions 8 and 9 above. 



11. (a) Distribute the balance of Equipment Expense account 

 over the various farm elements on a basis of horse labor. This 

 distribution is to be made as described under "Equipment Ex- 

 pense" and as shown in Illustration 53. In making these cal- 

 culations, the hours shown in parentheses in the horse labor 

 record are to be used. For example, if Illustration 47 contained 



