30 • FARM ACCOUNTING 



MARCH 



Mar. 1. The division of farm land for the year follows : Charge the titles given with 

 the rental at 6% on valuation of $100 per acre and any other debits noted below : 



Small Fruit, rental on 1 acre $6 and shrubbery worth $30 ; Garden, 2 acres ; Potato Crop 

 5 acres ; 2nd year Timothy Crop, 10 acres, 1st year Clover, 11 acres; Corn Crop, 40 acres; 

 Oats Crop, 40 acres ; Wheat Crop, 15 acres. 



Note that 1 acre home ground and 1 acre orchard have already been charged. The 31 

 acres remaining consist of woodland and pasture and will not be taken out of the Real Estate 

 account. 



Enter the above eight appropriations in the journal crediting Real Estate with the total 

 and post to the ledger in the order nametl, pages 11 to 18. 



Note. — Small sales of butter, eggs, poultry and the like, which will occur at intervals in the future, will 

 be entered in the sales summary sheets first and totaled from the summary to the journal monthly. See 

 note on Sales Summary, page 5. 



Alar. 2. Sold to the Sindlinger Dairy Company the six cows numbered in the inven- 

 tory 9, 11, 12, 13, 14, and 15, for $290, together with the good will of the milk route which is 

 estimated to be worth the unused milk tickets in customers' hands. 



Received checks from Goldleaf Creamery Co. and Eagle Hotel Co. to balance their ac- 

 counts. Paid A. Gregory check to balance account. 



Mar. 3. Sold Jonas Overburg, on account, 160 posts @ 20 cts. (farm price). Sold to 

 W. Cushman, on account, 10 cords wood @ $5. 



Mar. 11. Sold for cash 6 hogs, 1300 lb. @ $7. 



Mar. 18. There is on hand on this date among other items, the following merchandise : 

 1153 bu. corn, 346 bu. oats, 9 tons clover, 14 tons timothy, 9 cords wood, 88 posts, 255 bu. 

 potatoes, 59 bu. turnips. 



From estimates, it appears that there will be needed to carry through the season 600 

 bu. corn, all oats on hand, 5 tons clover hay, all timothy, 50 bu. potatoes. 



Sold all clover hay in excess of requirements for cash at $7.90 per ton. 



Mar. 20. Sold W. Cushman, on acct., all wood at $5.50 per cord and all posts on hand 

 at 21 cts. each. 



Mar. 22. Sold all potatoes in excess of requirements to A. A. Wells & Co. on account 

 @ 57 cts. per bu. 



Sold all corn in excess of requirements for cash .@ 53 cts. per bu. 



Mar. 29. Sold all turnips on hand to A. A. Wells & Co., on acct., @ 40 cts. 



Mar. 30. Paid cash for invoice of seed $67.90. (Charge Mdse.) 



Mar. 31. Sold for cash, during the month, per sales summary, dairy products $44.60, 

 and poultry products $7. 



There was used for seed 20 bu. wheat @ $1.50, 120 bu. oats @ 40 cts., and 2^4 bu. 

 clover @ $8. (Charge departments and credit Mdse. in general column.) 



During the month 62 posts were used at farm price, 18 cts. each, for repairs of fences. 

 ^Charge Real Estate.) 



Paid taxes on Real Estate $109.27 ; and on personal property $25.08, divided as follows : 

 Merchandise $13.11, Chattels, $1.22, Dairy $2.80, Teams $6.27, Hogs $1.68. 



The appreciable manure distribution for the winter season is as follows : Barn yard 

 manure 63 tons @ $2 (credit Dairy) ; stable manure 42 tons @ $2.20 (credit Teams) ; hog 

 manure 58 tons @ $2.25 (credit Hogs) ; Poultry manure 3 tons @ $4.50 (credit Poultry). 

 Charge all farm manure to Real Estate. 



Remark. — The student is now in position to note the three distinct interests of which the farmer must 

 keep account if he properly analyzes his farm organization. 



(1) The land interest, or the investment in the real estate, necessary to carry on the farm processes. 

 Investment in land is reasonably free from ordinary business risk. If it produces the equivalent of prevailing 

 interest rates on safe investments, the results are satisfactory. This return consists of the credits from the 

 rental charged to crops (or to tenants if rented to others), and from the miscellaneous returns from unclassified 

 portions of the real estate illustrated by wood and pasturage. These credits are diminished by the cost of 

 maintenance including repairs, insurance, taxes, common fertilizer, etc. 



(2) The manufacturing interest, which involves the outlays including rental of the land and the returns 

 from producing farm merchandise. 



(3) The trading interest, involving the disposition of the merchandise either by selling it or turning it 

 again into production. The attendant expenses of storage, preparation for sale, and delivery are placed against 

 the profit of market prices when sold over farm prices when produced. 



A scheme of accounting to be a reliable guide must separate these three interests, and consider the cost 

 and profits of each as apart from the others. 



