306 FARM ACCOUNTING 



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 consid- 

 ered also as a Statement of Resources and Liabilities as of De- 

 cember 31, 1917. 



(b) Prepare a Farm and Individual Income Statement for 

 the year. 



(c) Prepare a Change of Wealth Statement as of December 

 31, 1917. 



COMPARATIVE STUDY OP PROBLEMS 



After completing the statements of the business of L. E. Fay 

 under the cost system, a comparative study is to be made of 

 the results obtained under the cost method and under the general 

 method. This is effected principally through a study of the 

 ledger accounts of problems 3 and 4 of Chapter VII, together 

 with the accounts of problems 1 and 2 of Chapters VIII and IX. 



This comparative study is a most important step towards the 

 understanding of farm cost accounting. It was considered of 

 sufficient importance to warrant the repetition of L. E. Fay's 

 general transactions in the two sets of problems. 



Considerable time should be spent in class discussion led by 

 the instructor. It should be understood that the comparison is 

 between the two year period under the cost and general methods, 

 and not between 1916 and 1917 under the same method. The 

 discussion should aim to present and answer the following ques- 

 tions : 



(a) Were the transactions between the farm and outside par- 

 ties the same under the two methods? 



(b) Is the net gain for 1916 the same under both methods? 

 the net gain for 1917 ? 



(c) Why is there no difference, under the general and cost 

 methods, in the following accounts: B. E. Adams, Notes Re- 

 ceivable, Equipment, Cash, Roy Wade, Watt Hardware Co., State 

 Trust and Savings Bank, Mortgage Payable, Notes Payable? 



