318 FARM ACCOUNTING 



it is, the next year's operations are charged with the co- 

 pei -mitt ing the field to He fallow. At the close of the next year, 

 part of this expense will be carried over to subsequent years, 

 to show the benefit they derive from having it lie fallow during 

 the current year. 



After recording the inventories as outlined above, the result- 

 ing balance of each of the field accounts on which crops were 

 raised during the year shows the cost of producing such crops. 

 This COM i> now transferred to the Crop accounts by making 

 cut lies in the money columns only, debiting the several crop 

 accounts and crediting the respective field accounts. Notations 

 have already been made in the explanation columns at the time 

 of harvest. The unit cost should now be recorded in the ex- 

 planation column also. ( S.-c Illustration 52.) Bring the in- 

 i"s of fields down below the rulings. 



1 4. Transfer to General Expense account by journal entry 

 any balance (presumably quite small) remaining in Mill Feed 

 account after entering and brinirinir down an inventory of $10. 



AUo transfer the balances of Equipment Expense, Labor, 

 and Exchange Labor into General Expense account, by journal 

 entry. 1'oM the entries, and rule off the accounts closed. 



r>. Distribute by journal entry the general expenses over 

 the productive elements, using the following percentages for the 

 purpose of obtaining uniformity: cattle 20%, swine 15%, poul- 

 try 1%, corn 15%, oats 12%, wheat 15%, barley 1%. 

 beans 1%, hay 20%. Post the entry, ruling off the General 

 Kxpense account. 



16. Make entries for the following inventories of livestock and 

 commodities on hand at the close of the year, transferring by 

 journal entry to Loss and Gain account the balances of all ac- 

 counts open on the books that show either a loss or gain. Post the 

 entries, making sure that all necessary accounts are ruled off 

 and balances or inventories brought down. Inventories Feb. 

 '29, 1916: Horses (13), $1625; cattle (16), $575; swine (50), 

 $<):): poultry (110), $55; corn, 100 bu. at 38c (cost), $38; oats, 

 450 bu. at 49c (cost), $220.50; wheat, 190' bu. at 67c (cost), 

 $127.30; barley, none on hand; hay, 23 tons at $7.10 (cost), 

 $163.30; straw, 65 tons at $3 (book value), $195; silage, 85 



