300 FARM ACCOUNTING 



and Horses accounts into Loss and Gain account, carrying the 

 inventories down below the ruling. 



16. Close any other accounts showing a gain or loss into the 

 Loss and Gain account. Pasture and Interest on Investment are 

 examples. 



17. Close Loss and Gain account into L. E. Fay's Capital ac- 

 count, ruling off the latter and hringin.ir down the balance. 



18. Rule off and bring down the balance of Cash account, and 

 of any other property or liability accounts not specifically treated 

 above. 



INSTRUCTIONS AFTER CLOSING 



(a) Take a trial balance after closing which may be con- 

 sidered :ils. as a Statement of Resources and Liabilities as of 

 December .51, 1916. 



(b) Prepare a Farm and Individual Income Statement for 

 the year. 



(c) Prepare a Change of Wealth Statement as of Decem- 

 ber 31, 1916. 



2. You are to record in the cash journal (beginning on a new 

 page) the transactions of L. E. Fay for the year ended Dec. 31, 

 1917, which were as follows: 



Jan. 3. Gave two promissory notes to landlord for $250 each 

 in payment of year's rent, one due Sept. 1 and one Dec. 15, 1917, 

 without interest. (Debit Rent account.) 



Jan. 3. Paid Roy Wade cash to balance account. 



Jan. 4. Sold some corn for $400 cash. 



Jan. 15. Paid $20 for rlothin-. 



Jan. 30. Butchered a beef for family use, $70. 



Jan. 31. Took savings bank pass book to bank and had in- 

 terest credited for the six months to Jan. 1st. $7.50. (Debit 

 State Trust & Savings Bank and credit Interest.) 



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



Feb. 3. Sold beef quarter and other parts of the animal butch- 

 ered a few days ago for $30. 



Mar. 1. Sold hogs for $100 cash. 



Mar. 1. Paid personal taxes, $39. 



