COST ACCOUNTING 305 



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



7. Make an entry for the value of commodities fed to live- 

 stock during the year, using 1 the results stated previously in 

 this problem. Post the items in the entry just made. 



8. Use the results given for the Year's Labor Record as a 

 basis for a journal entry, being careful to use both the debit 

 and credit exchange labor items correctly, as in problem 1, Mr. 

 Fay's 1916 accounts. 



9. Make a journal entry from the results of the Yearly Horse 

 Labor Record, using Mr. Fay's 1916 accounts in problem 1 as a 

 guide if necessary. 



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



11. Make an entry distributing the balance of Equipment 

 Expense over the various farm elements following the sugges- 

 tions given in instructions 11 (a) and 11 (b) in the 1916 ac- 

 counts of L. E. Fay. Post the entry. 



12. Make entries to close Labor, Exchange Labor and Equip- 

 ment Expense accounts. Post. 



13. There is no inventory of Mill Feed. Make a journal entry 

 to close the account into General Expense account. Post the 

 entry and rule off the Mill Feed account. 



14. Close Interest account into General Expense. Distribute 

 the General Expense balance over the various productive ele- 

 ments by journal entry according to the following propor- 

 tions: cattle 5%, hogs 7%, poultry 3%, oats 20%, hay 15%, 

 corn 35%, wheat 15%. Post the entry. 



15. Make entries direct in the accounts for the following in- 

 ventories: household furnishings, $500; horses, $1200; cattle, 

 $600; hogs, $300; poultry, $30; wheat, $200; oats, $300; corn, 

 $1250; hay, $330. 



Transfer any balances remaining in the productive, House- 

 hold and Horses accounts into Loss and Gain account, carry- 

 ing 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 

 account, ruling off the latter and bringing down the balance. 



