50 BULLETIN 1150, U. S. DEPARTMENT OF AGRICULTURE. 
December 2. 
(18) Paid John Clark, manager, commission on shipment No. 112, check 
No. 111, $10.11. 
December 5. 
(19) Received from C. & NW. Ry. $25.75 in settlement of claim of Novem- 
ber 7. 
December 6. 
(20) Paid Stephen Stone, attorney’s fees for collecting claim of November 7, 
check No. 112, $3. 
(21) Borrowed at the State Bank on 3 months note at 7 per cent $100 to 
cover overdraft. 
December 9. 
(22) Paid Sinclair Oil Co., for 10 gallons gasoline, check No. 118, $2. 
December 15. 
(23) Bought of J. Andrews, retiring member, capital stock certificates No. 
24, check No. 114, $5. 
(24) Paid State federation dues for 1921, 50 cents on 125 cars, check No. 
115, $62.50. 
- Fiscal year adjustments. 
(25) The Board of Directors voted to charge off depreciation on the equip- 
ment estimated at $50 for the year. (This amount will be credited to the yard 
and office equipment account and debited to the loss and gain account.) 
(26) The credits in the insurance fund account at this point exceed the 
debits by $696.82. The Board of Directors, it is assumed, decided to carry for- 
ward only $500 in this account. Hence the excess of $196.82 will be transferred 
to loss and gain by debiting the former account and crediting the latter. 
(27) The Board of Directors also decided to close the credit balance of 
$7.80 in the undivided balance account to loss and gain. Debit undivided bal- 
ance account and credit loss and gain. 
Had the credit balances in the two above instances been in excess 
of the needs of the business, the directors might have voted to re- 
fund the excess to the shippers as a patronage dividend. Prefer- 
ably such refunds should be first credited to indebtedness when the 
refund is decided upon by the directors, and, subsequently when 
paid, debited to indebtedness. 
Distribution of net income. 
The loss and gain account at this point shows a credit balance of 
$147.12 which represents the excess of all deductions and income 
over all expenses incurred. As profits can be distributed legally 
only by action of the Board of Directors, it is assumed the board 
has voted to carry the balance of $147.12 to surplus. 
(28)°In accordance with the above action of the Board of Directors debit 
loss and gain account with the balance of $147.12 and credit same to net 
worth. 
All columns should again be totaled as was done at the end of 
November. As this marks the end of the fiscal year, the smaller side 
of each account should be deducted from the larger and only the 
balance carried forward to the new fiscal year. 
