32 BULLETIN 865, U. S. DEPARTMENT OF AGRICULTURE. 
The i:ollowing Journal entries will illustrate the procedure necessary to close the 
books: 
Entry No. 1. 
Desir. CREDIT. 
000 Butter Sales. 
000 Cream Sales. 
000 Milk Sales. 
000 Cheese Sales. 
000 Buttermilk Sales. 
000 Merchandise Sales. 
Less ari dake ge re ie anes eee ye ene ee 000 
(To close the Sales accounts into Loss and Gain.) 
Entry No. 2. 
000 Discount Received. 
Loss and Gates. 42". = 2 ee ee ee 000 
(To close the Discount Received account into Loss and Gain.) 
Entry No. 3. 
000 Loss and Gain. ; 
Butter PatePurchascs so Sec2 5 oes... ee eee 000 
Skim Milk Purchases) o22.- 2. a eee 000 
Merchandise barchases = 0 te eee 000 
(To close the Purchase accounts into Loss and Gain.) 
Entry No. 4. 
000 Loss and Gain. 
Labor.Jf. 005999 See Ie Sa AEE 000 
Power! and Reiriceration2 st 26. 72 A a eee 000 - 
Manufacturme Suppless= eis a es See 000 
Repairs om Plantenc Seen ses Seo ae ee 000 
Tool: Replacement< 2.2232 ee eee 000 
Depreciation on Plant222 4 2S See SS - 000 
Automobile Truck: O perationgs2 26 = ee eS 000 
Repairs on Automobile Trucke.—.._-< --- 32 000 
Depreciation on Automobile Truck................- 000 
Express, Freight, and Drayave.: _ 225. 5. 35. =seeee 000 
Telephone, Telegraph, and Postage...............- 000 
Office Salaries i350 Se aaa eis ee 600 
Office Supplies: 23222 ss 2 ee ee See 000 
Underpayments and Overpayments..............-..- 000 
Taxess ¢ 3c tnd ot -excee aes See ee ee 000 
Tnsurances:e23.. het a ee ee See 000 
Interest.....34 a326so8 5. ota ee Se eee ee 000 
‘Loss from: Bad ACComnts:: :2 25 cr ee ee 000 
MisceHaneotiss. 24 $5: o-2enese ee 6 eee eee 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. 
Dividend. A ppropriaitons <= ee ee eee 000 
Sinkine. Fund Appropriation: .=-._-.-.-s_- #es2-s 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. 
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