32 BULLETIN 865, U. S. DEPARTMENT OF AGRICULTURE. 



The following Journal entries will illustrate the procedure necessary to close the 



books: 



Entry No. 1. 



Debit. Credit. 



000 Butter Sales. 



000 Cream Sales. 



000 Milk Sales. 



000 Cheese Sales. 



000 Buttermilk Sales. 



000 Merchandise Sales. 



Loss and Gain 000 



(To close the Sales accounts into Loss and Gain.) 



Entry No. 2. 

 000 Discount Received. 



Loss and Gain 000 



(To close the Discount Received account into Loss and Gain.) 



Entry No. 3. 

 000 Loss and Gain. 



Butter Fat Purchases 000 



Skim Milk Purchases 000 



Merchandise Purchases 000 



(To close the Purchase accounts into Loss and Gain.) 



Entry No. 4. 



000 Loss and Gain. 



Labor 000 



Power and Refrigeration 000 



Manufacturing Supplies 000 



Repairs on Plant 000 



Tool Replacement 000 



Depreciation on Plant 000 



Automobile Truck Operation 000 



Repairs on Automobile Truck 000 



Depreciation on Automobile Truck 000 



Express, Freight, and Drayage 000 



Telephone, Telegraph, and Postage 000 



Office Salaries 000 



Office Supplies 000 



Underpayments and Overpayments 000 



Taxes 000 



Insurance 000 



Interest 000 



Loss from Bad Accounts 000 



Miscellaneous 000 



(To close the Expense accounts into Loss and Gain.) 

 At this point the Loss and Gain account should be ruled and the balance brought 



down as net income or net loss. The following entry should then be made: 



Debit. Credit. 



000 Loss and Gain. 



1 'ividend Appropriation 000 



Sinking Fund Appropriation 000 



(To close the Appropriation accounts into Loss and Gain.) 

 The balance of the Loss and Gain account should then be transferred to the Surplus 

 account upon direction of the Board of Directors. 



