304 FARM ACCOUNTING 



40 hours by the neighbors; oats, 280, of which 100 hours were 

 worked by regular help and 180 hours by the neighbors; wheat 

 217, of which 82 hours were worked by regular help and 135 

 hours by the neighbors; hay 165; exchange labor 310. (The 

 hours given above are to be figured at $0.20 an hour as in 

 closing instruction 8 referred to at the close of this problem.) 



The monthly horse labor records have been summarized into 

 the Yearly Horse Labor Record for the year ended Dec. 31, 

 1917, giving the total hours chargeable against various accounts 

 as follows: Cattle, 20; hogs, 33; general expenx*. 7S; equipment 

 expense, 19; poultry, 13; household, 132; corn, 'Josn. oats, 604, 

 of which 396 hours were worked by regular help and 'Jos hours 

 by the neighbors; wheat, 435, of which 295 hours were worked 

 by regular help and 140 hours by the neighbors; hay, 

 exchange labor, 330. (The hours given above are to be figured at 

 $0.10 an hour as in closing instruction 9 referred to below.) 



INSTRUCTIONS FOR CLOSING 



(See also Instructions for Closing at the end of Problem 1, 

 Fay's 1916 accounts.) 



1. Post .all entries from the cash journal to the ledger before 

 framing journal entries for the feed, labor and horse labor 

 distributions. 



2. Take a trial balance to test the accuracy of the work be- 

 fore closing. 



3. Make a journal entry debiting the elements named below 

 and crediting Rent, to distribute the $500 rent over the several 

 farm elements on a basis of the following percentages: House- 

 hold 3%, cattle 4%, hogs 5%, horses 4%, poultry 2%, corn 

 32%, oats 15%, wheat 10%, hay 12%, pasture 10%, equip- 

 ment 1%, miscellaneous elements (debit General Expense) 2%. 



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

 considering 4% on the equipment and on each class of live- 

 stock. 



5. Make an entry for equipment depreciation during tue year 

 calculated at 10% diminishing value method. (Debit Equip- 

 ment Expense, credit Equipment.) 



