6 



raises grain, but has no drill, binder, etc., there should be an item 

 for machinery hire. If truck crops or fruit are sold, there should 

 be an expense for barrels, bags, crates, etc. If the farmer retails 

 milk, fruit, truck, etc., there should be a relatively large equip- 

 ment in horses, wagons, etc., and a larger labor bill than on a 

 similar farm which sells wholesale. If an engine is included in 

 the list of machinery, there should be items for fuel and oil. If 

 there is grain to thrash, clover to hull, etc., there should be an 

 item for fuel and thrashing. If hay is sold, look for baling charges. 

 An unusually large labor bill might be explained by machine work 

 done for others or other outside work; also, by the construction of 

 buildings, of laying tile drains, or building of fences, etc. 



If the area of pasture is large and the live-stock inventory shows 

 few animals on the place, look for receipts from pasture under 

 miscellaneous receipts. 



8. See if the rate of depreciation on buildings is consistent with 

 the character of the buildings, as judged by their value. 



9. Where new buildings or other improvements are constructed 

 during the year care should be taken to see that the labor used in 

 their construction is not included in the ordinary labor to perform 

 the farm work. 



10. Feed and supply inventory: The amount of feed on hand at 

 the first inventory, plus the amount raised and the amount bought, 

 less the amount on hand at the second inventory, should be con- 

 sistent with the live stock kept to consume this feed. If there is 

 no hay or corn in the first inventory, then some must be bought and 

 should show in expenses. If the feed on hand at the beginning of 

 the year is small, especially on dairy farms, some must be bought. 

 If there is relatively a large amount on hand at the first inventory, 

 the amount bought should be small. 



In the case of seed for field crops, such as oats, if the amount for 

 this year's seeding is included in the first inventory then the 

 record should not show seed bought for the same crop during the 

 year; or if it is so included it should not be charged as an expense, 

 for this would make a double charge for this item. When a record 

 does account for the item in both the first inventory and the 

 expenses, the item of expense is usually found to be the amount the 

 farmer has purchased for the following year's seeding, which item 



