Glass Book Go{pght]^"_ .COPfflUOHT DEPOSIT. Digitized by the Internet Archive in 2010 with funding from The Library of Congress http://www.archive.org/details/farmaccountingfoOOgood FARM ACCOUNTING -FOR- The PRACTICAL FARMER yUL —BY- LLOYD E. GOODYEAR ^ 1911 Good year-Marshall Publishing Co. Cedar Rapids, Iowa Copyright, 1911. Goodyear-Marshall Publishing Company. CCI.A278952 Farm Accounting. T^' The farm is a factory in which thought, mone_y, and labor are appHed to soil and natural orces in order to combine them into produce for consumption. So long has mankind been engaged in farming that many of its processes can be followed by persons with very little conscious learning, and with no account keeping, just as in former times, it was easy to secure game with a simple bow and arrow. The fact that a certain amount of farming suc- cess can be attained without bookkeeping, has made the farm the one kind of factory where bookkeeping has not in the past been universally deemed necessary. Other factories, un- less c|uite small, can no longer run successfully without careful attention to accounts. The larger the establishement the greater the need of bookkeeping, until we reach the great iron works, wood works, machinery wOrks, clothing works, etc., where, if the books were not kept for a single day, confusion would reign, and where if books were not kept for a single month, dissolution would set in. At the present time, we are beginning to witness the coming of men skilled in account- ing, who have applied their skill to the farm with the result that large farm chains are be- ing organized, replacing the many small farms which are not safeguarded by a scientific system of accounting. Those who think clearly cannot fail to see that a proper accounting system reduces the labor and mental strain of the prosperous farmer, while the farmer who is still struggling with large payments and small income, must depend on account keeping until his books have guided him to at least a comfortable degree of success. One must get the account keeping attitude. now-a-days, if he would master his business. The stories of the successes of our forefathers in subduing the wilderness with their vast physical energy, like the stories of knighthood in the middle ages, should contribute the qualities of heroism and chivalry to the sons. But the sons cannot make any eminent success in business today unless they add to their forefathers' vigor, the incisive judgment and adaptability to surroundings demanded by present commercial development. The mod- ern guide to success is the intelligently kept ledger; the modern consultation room is the' bookkeeper's desk. The proper study of accounts will do much to restore to the farmer the primary standing which has been usurped by other masters of business where bookkeeping is more highly specialized. This set may be classed as belonging to advanced accounting in the sense that it is a complete scientific scheme of accounting equal in grade with that used by the banker or mer- chant. In operation it is simple and should not, on an ordinary farm, require more than five or ten minutes per day for its successful use. The principles given are to be thoroughly mas- tered but when once mastered they should be adec[uate to future needs. We hope to see in time to come the evidences of well kept books in the material pros- perity of the thousands of farms that adorn the thorofares East, West, North, and South. FARM ACCOUNTING PREPARATION It is assumed at the outset that the student is familiar with ordinary business papers and legal forms. Among these are included the note, check, draft, receipt, bill or invoice, bank book, deposit ticket, statement of account, duplicate order and other carbon duplications, let- ter, envelope, R. R. bill of lading, R. R. expense bill, stock certificate, telegram, C. O. D. form, lease, common agreement, bill of sale, deed, mortgage, release of mortgage, insurance policy, proof of loss, etc. There are few, if any, general business forms that will require par- ticular attention in a study of this kind. In bookkeeping the student is expected to know the double entry principle and to use it in the common books of original entry, together with posting, trial balance and financial statement. It is desirable that he be able to introduce special columns where needed. Some review in the methods of transferring department statistics to general accounts would also be in order. These matters can be gathered from the general treatment in this set but its practical value would be enhanced if the attention is not. diverted from the problem actually in hand. OBJECT The objects to be emphasized in this set are (1) an exhibit of the cost of prodticing each of the farm products, (2) the returns derived from their sale or use, (3) the general value and progress of the business. These facts should be placed in such form as to render convenient comparison from year to year. THE LEDGER This book is divided into two parts — the first, for general accounts, including an account with each department of farm industry considered ; the second, including accounts with notes and persons. It should be a book large enough and well enough bound to last on an ordinary farm for a period of ten years. The standard double entry ledger ruling is used, as the explanation column in it allows room for the memoranda that should accompany prac- tically all entries. TRIAL BALANCE BOOK A continuous trial balance (one with titles to the left and several sets of debit and credit columns for successive trial balances to the right) is used, in which are recorded the trial balances taken on opening the books and thereafter on the last date of each month. JOURNAL A six-column journal is used for all current entries. This book has special debit and credit columns for cash receipts and payments, also merchandise cost and returns. (It will be noted that the Merchanchse account represents all finished product in marketable condi- tion.) The journal also holds the distribution of labor, team use, and product. These items are sttmmarized monthly and charged or credited through the jotirnal to the departments affected. SUMMARY BOOKS The essential summary books are three in number : One having columns each for every department requiring manual labor, called the Labor Summary; one having columns for the departments requiring the use of teams, called Team Use Seminary; and one having col- umns for each division of production having regular output, called Product Summary. Each of these books has a miscellaneous column for entries of unusual labor service, team service, or source of product. The distribution of above essentials is made daily in the summary books. The daily items are footed monthly and carried to the ledger accounts affected as above explained. The sales summary may be used for original entries like the other summary books, if sales are active as they would probably be when garden truck is sold. In such case, sales on account can be posted from the sales summary without entry in the journal, except in totals at the close of the month. FARM ACCOUNTING AUXILIARY BOOKS In addition to the above summary books, a number of books for reference not necessary to the accounting scheme may be kept. These are called auxiliary (helping) books, and may be taken up or discontinued as serves the purpose. Among these may be mentioned registers of stock pedigree, records of detailed cost and production in any experimental test, sum- mary of sales for the month showing quantity of each commodity, with prices, etc. Such books, while valuable for the purposes intended, are independent of the accounting scheme. DAILY REPORT CARDS Success in keeping fai^ni books depends on convenience in making the original records. This is brought about by the use of individual report cards properly ruled and printed to ac- commodate the required data. Each person working about the place receives a card in the morning in which he fills during the day the time spent in departments, the team use, the product passing through his hands, and on the reverse side of the card the business dealings which he carries out. This card he returns at night together with any cash or other matter that should accompany it. Entries are made from these cards at the convenience of the book- keeper who then files them as vouchers. PRELIMINARY EXERCISE DETAILED RECORD FOR EXPERIMENTAL PURPOSES The Poultry Record for experimental purposes is here given. A similar record can be kept if desired for any specific line of production. A detailed orchard record, a garden record, a real estate record, etc., would be of value in correcting the uncertainties of "guessing." The experimental poultry record here given exhibits in detail five items of cost : (1) labor, (2) feed, (3) housing, ground and tools, (4) stock, (5) miscellaneous. It gives three items of production : (1) eggs, (2) stock, (3) miscellaneous. The columns are lettered A to H in order to allow a special memorandum to refer to an amount in any column without requiring the use of more than one line per day. Other facts are recorded as shown by the column headings. Notice particularly that the total value of the investment is entered at top and is changed with each day's entries, and at the end of the month, the interest on the investment can be easily computed and charged in. OPENING THE RECORD The inventories at starting should be placed at the head of the columns (red ink) so that the current entries following (black ink) can be footed separately. The red ink amounts at top plus the footings for the current month will be added and carried to the top of the next open folio representing the following month. These in turn will be carried forward month by month to Dec. 31, the close of the year, when a new register is to be opened for the ensuing year. MEMORANDA The following entries are made on the assumption that the labor is worth 25c per hour, and that money is worth 6 per cent interest annually. Make all daily calculations correct to the nearest cent. Dec. 1. Began poultry record today with the following property invested : 120 chick- ens, 360 lb. @ 10c per lb., entered in column D ; Chicken house valued @ $84.50, fencing, crates, etc., $16.80, bone grinder, $7.50, sprayer, $3.00, in column C; 40 lb. chick feed worth 80 cts., 12 bu. corn @ 50 cts., 7 bu. wheat @ $1.10, in column B; one Poultry Guide Book, $1.20, unexpired subscription to the Poultry Journal, 40c, in column E. Enter number of poultry on hand in column provided for that purpose. Enter the vahies here shown in the respective debit columns (red ink). Enter the total in the investment balance column (black ink). In this exercise, entries are to be made directly into the record from memoranda as given. FARM ACCOUNTING ^^ ^19^^ POULTRY Dr. -A, Dr.- B. Dr.- r. Dr.-D. Dr.-E. Day of No, Fowls MEMORANDA Arnt Columi LABOR HEED HousioE Ground and Tools Stock Hours Value MIscclUneous ^^a Forward Totals > ■i' S' o / / / ^ o i^ / 6 o 1 / z^- 2 //^:z-^:Zxy ^ :fy ri /^ 3 'i:?^(^r,ui.^&Ay.^^X^,Z^ cZ ^ /G 7^' 4 /'i S /// / .tJ' 1 27 ^7 /<^^(:^^^'/^^c^^^ -^ /'A H 1 r^Uf 28 "^ / ^.^ 29 // ■ /2 30 ''^JZM^y^£<:^- ' ^. / ^. 31 'o^:i ^°@^^V. -/^/ ■^^^. f / ^.xy - ^-^ :' J" ■ ■/ 6 i-tf :3y 3 .5 / f 2 2o ^ o i' ^■^7 Dec. 1. During the day, one hour was spent in labor on poultry and 17 eggs worth 24 cts. per doz. were gathered. Charge labor 25 cts., and credit eggs 34 cts. on the line dated Dec. 1. Add the debit and subtract the credit from the investment balance showing the invest- ment burden reduced to $163.81. Dec. 2. Today, spent time 2 hrs. ; nails purchased 10c ; eggs gathered 16 @ 24c. Enter and extend balance. Note that the explanation referring to the nails purchased refers to the entry for the amount in Column "C" — Housing, Ground and Tools. Dec. 3. Labor ^ hour; bought 100 lb. oyster shells for 75c; sold the bone grinder on hand for $8 ; eggs gathered 8 @ 24 cts. Dec. 4. Eggs gathered 15 @ 24 cts. ; labor ^ hour. " 5. Labor 1 hr. ; 2 chickens, 8 lb. used or sold @ 10 cts. per lb. ; 19 eggs gath- ered @ 25 cts. Count the chickens remaining and place the number in the "No. Fowls" column. Dec. 6. Added to investment a pen of three fowls for $20; labor 1 hr. ; 16 eggs gath- ered @ 25 cts. Enter number of fowls on hand. Dec. 7. Labor 1 hr. ; 18 eggs gathered @ 26 cts. ; 10 chickens, 45 lb. sold @ 10 cts. " 8. ^ hr. labor ; 14 eggs gathered @ 25 cts. " 9. ^ hr. labor ; 17 eggs gathered @ 26 c-ts. " 10. 100 lb. granulated bone bought for $3 ; labor y. hr. ; 13 eggs gathered @ 26 cts. Dec. 11. 34 br. labor; 22 eggs gathered @ 26 cts. " 12. 1 hr. labor ; purchased glass for repairs 32 cts. ; eggs 15 @ 27 cts. " 13. Bought 100 lb. mica grit for 75c : 1 hr. labor ; 21 eggs @ 27c. " 14. 1/ hr. labor ; 16 eggs @ 27c. " 15. y. hr. labor ; 100 lb. Kaffir corn bought for $1.50 ; 13 eggs @ 27c. " 16. 1 hr. labor ; 18 eggs @ 28c. FARM ACCOUNTING RECORD c .-?. Cr.-G. Cr.-h . Acnt. Col. EGGS stock Miscellaneous Number per Doz Value Balance Forward Totals /<^u ^^ /? ^.^ c/// / /.y^/ /V J^ '/^ /^M Z}!^ ^^AZ/-f^t^yy^^:^,^^y^ '^ / // rT /cT^ /■ --- /it£^z^/e%) ■.^ /^ ^..r ^4^ A /■r'j'^a 1 ^z" ^z v/ //' .ix ^< /y /^ ^'^ -g// ^ (^ / .^ .^^ • .^ ^^ c^Z ////^^ ;g/^ 2^ zi^ 3* 3 i -S Dec. 17. 1 hr. labor ; paid poultry association dues $1 ; 24 eggs @ 28c. " 18. yi hr. labor ; 17 eggs @ 28c. " 19. 1 hr. labor ; 29 eggs @ 27c. " 20. Yo hr. labor ; bought 100 lb. poultry mash for $1.75 ; 29 eggs chickens sold, 96 lb. @ 10c. Dec. 21. y. hr. labor ; 21 eggs @ 28c. @ 27c; 24 2^ hr. labor ; 21 eggs (a), 28c ; sold 25 lb. granulated bone for 75c. 25. 26. 27. 28. 29. 30. 31. " 23. 1 hr. labor; bought 100 lb. charcoal for $1.50; 26 eggs @ 28c; sold 10 chick- ens, 45 lb. @ 10j4 cts. Dec. 24. Bought 1 dry food hopper $1.50; 1 hr. labor; 27 eggs @ 28c. y. hr. labor ; 29 eggs @ 28c. Paid for advertisement in poultry journal $3; 1 hr. labor; 23 eggs @ 28c. \y2 hr. labor; bought 100 lb. beef scraps for $3.50; 28 eggs @ 27c. 1 hr. labor ; 27 eggs @ 28c. 2 hr. labor; 21 eggs @ 29c. 1 hr. labor ; bought 45 bu. corn @ 48c ; 24 eggs^@ 29c. Before making entries for the last day of the month, foot the Investment Bal- ances column including the .balance carried forward. The total of the daily balances equals in value the entire amount invested for one day. Find the interest on this at 6 per cent (point ofT 3 places and divide by 6), and charge the interest in the debit miscellaneous col- umn. Complete the record of this day with entry of 1 hour labor; 29 eggs gathered @ 30c. Proof of Work. Foot all columns in red ink. Be careful not to include red ink totals at top of colunms. The balance at beginning of month plus the sum of debit footings less the sum of. credit footings equals balance at close of month if work is correct. Loss or Gain. The loss or gain for any period may be found by comparing the last balance with the value of property on hand. For example, if on taking an inventory we find that we have on hand charged in column B $25.85; C $106.22; D $59.56; and E $3, the FARM ACCOUNTING Slim of these, $194.63, will show a net gain for the month if greater than the last balance or a net loss if less than the last balance. Continuing Next Month. Carry the inventory amounts forward (red ink), also num- ber of fowls and investment balance (black ink) as before. QUESTIONS 1. How many hours were given to poultry raising during the month ? 2. How would you find the average egg prodution per fowl ? 3. How much is now invested in the poultry industry ? 4. What is the value of the entire investment for the month? 5. What is the total of returns for the month? 6. How would you find the total feed cost for the month? (Ans. By subtracting the inventory total of feed on hand from the entire total of feed column.) 7. How can the total profit for the month be found? (Ans. By subtracting the last investment balance from the total present value of all property that has been charged in the several debit columns.) 8. How should a following month's record be opened? 9. Why is interest included as a charge on the last day of the month? 10. How can the actual investment in this business on a given date be found ? Farm Set Jan. 1, 1911. E. A. Atkinson, farmer, decides to keep a full set of books so arranged as to show the following facts of his farming business : 1. The amount actually invested at any one time in any department. 2. The profit or loss on any department. 3. The outlay necessary for the profitable maintenance of any department. 4. The waste, if any, that may be eliminated. . 5. The amount and kind of his resources and liabilities. 6. The net profit of farming. OPENING THE BOOKS Inventory. The first step in preparing to open the books is to take an inventory of all property and debts. On a farm this inventory should be listed on journal paper with great care to include everything of value about the place and to give to it a fair valuation. After the first inventory, subsequent inventories will be found less difficult, as the first one will be on record for comparison. When the inventory is completed, copy it neatly in the journal. The following are the items : FARM ACCOUNTING Inventory of Real Estate and Personal Property of E. A. Atkinson's Farm — 5". E. Yi,, Sec. 7, Tzup. 83 iV._, 7?." 7 W,, 5 P. M. RESOURCES 1. 160 Acres Land less Buildings $16000.00 2. Farm House and Improvements, Famil}' use 2700.00 3. Buildings for use of Teams 420.00 4. Buildings for use of Dair)^ 950.00 5. Buildings for use of Hogs _ 300.00 6. Buildings for use of Poultry ' 116.50 7. Buildings for storage, including- corn cribs, wheat bin, etc. 250.00 8. Cow, June ' 55.00 9. " Lily 65.00 10. " Cremo 40.00 11. " Crumple 45.00 12. " Blackhawk 35.00 13. " Star 80.00 14. " Dunn 38.00 15. " Watercress 45.00 16. " Spotty 50.00 17. 4 yearlings 80.00 18. 3 two-year-olds 90.00 19. 1 Cream Separator 42.00 20. I Churn and attachments 58.00 21. Horse, Dan 160.00 22. " Caesar 200.00 23 " Kit 125.00 24. " Joe 90.00 25. " Nancy 75.00 26. 1 two-year-old 80.00 ' 27. 1 Gang Plow 45.00 28. 1 Walking- Plow 14.00 29. 1 Disc Harrow 18.00 30. 2 Corn Cultivators 72.00 31. 1 Farm Wagon 56.00 32. 1 low Wagon 40.00 33. 1 Corn Planter 28.00 34. 1 Manure Spreader 22.50 35. Harness 37.50 36. 30 head Hogs, 4500 lb., per cwt @ $7.00 315.00 37. 77 Chickens, 272 lb @ .10 27.20 38. Chicken Feed carried over 5.10 39. 1896 bu. Corn @ .50 948.00 40. 600. bu. Oats @ .35 210.00 41. 190 bu. Wheat @ .90 171.00 42. 42 tons Timothy @ 8.00 336.00 43. 10 tons Prairie Hay @ 4.00 40.00 44. 16 tons Clover @ 7.50 120.00 45. 300 head Cabbage @ .04 12.00 46. 420 bu. Potatoes @ .45 189.00 47. 200 bu. Turnips @ .25 50.00 48. 480 lb. dressed Pork @ .08 38.40 49. 300 lb. dressed Beef @ .06 18.00 50. 20 Cords Wood @ 5.00 100.00 51. 459 Posts @ .18 82.62 52. Cash in Bank ■ 129.88 Total $25314.70 10 FARM ACCOUNTING LIABILITIES 53. Mortgage note favor Monarch Insurance Co., due Jan. 1, 1913, with interest at 5% payable July 1 and Jan. 1 until paid. Part purchase price of land. Next inter- est payment July 1 $ 7000.00 54. Note due bank Jan. 15 200.00 55. James Goodwin, balance due on acct 49.69 56. A. A. Wells & Co., balance due on acct 178.29 57. W. Cushman, balance due on acct B.04 Total $ 7433.02 As shown in the model, number the items in the inventory 1 to 57 for convenient refer- ence later on. Ledger. The general accounts of the ledger will include Proprietor's Investment, Cash, Merchandise, Real Estate, Chattels, Dairy, Teams, Hogs, Poultry, Orchard, and Labor. Other departments as needed will be opened. Give each account one page of ledger space. The general accounts will occupy pages 1 to 20. The order of their entry is given under "Opening the Ledger" on the following page. The personal accounts are to be entered in the personal division of the ledger. Be care- ful to make full use of the explanatory space. For example, a long time note should have explanation showing to whom given, the terms of payment, etc., thus making a convenient reference. When personal accounts are opened, any conditions or explanations of the ac- count should be recorded at the beginning of the account. Thus, an account opened with an employee should give a brief memorandum of the terms of his employment, at the top of the ledger account. FIRST JOURNAL ENTRY The inventory which has been spread on the journal in memorandum form should now be reduced to debit and credit entries. Before considering the titles to be used in detail, observe that the journal has two special debit and credit columns, which are footed monthly and posted from the general columns as single items. In making the opening journal entry, total the items Nos. 1 to 7 of the inventory and charge Real Estate with their sum. Total items Nos. 8 to 51 and charge Chattels. Charge Cash (in general column) with No. 52. Credit Nos. 53 an 54 to Notes Payable. Credit Nos. 55 to 57 to the respective persons owed. Credit E. A. Atkinson, Proprietor, with the difference between the total debits and credits entered. Rule and total the opening entry as shown in the model form. OU-i^t^^i^^^t-tZ^^,:^ /& ^yCy (!^^yC-C^>4>i^'i'7,.=i.-^^<><-^ c^,iZ-i-, /-S^; '1 2^ FARM ACCOUNTING 11 OPENING THE LEDGER It has been determined that accounts will be kept with each of the general divisions of the business named before. Enter the titles in the general ledger, one page each, reserv- ing page one for the proprietor, and opening the other general accounts, giving Cash page 2, Merchandise 3, Real Estate 4, Chattels 5, Dairy 6, Teams 7, Hogs 8, Poultry 9, Orchard 10, Labor 19, General Expense 20. (Reserve pages 11 to 18 for crop accounts that will be opened later in the year.) Enter the financial accounts beginning with Notes Payable in the second division of the ledger, on page 21, giving one page to each account. Be careful to index all accounts. Post the proprietor's credit on page 1. Likewise post Real Estate, Chattels, and Cash to the respective accounts, using the explanatory space in each instance. When the financial accounts are posted, the explanatory space should be freely used describing notes and the itemized debits and credits of the accounts with persons. An ac- count with a person should be self-explanatory, so that any discussion relative to it would not, as a rule, recjuire reference to the original entry. Post all accounts in the opening entry. ■ |// J/ ^/ /I ''J2. / / 2. o 7 y / ^£1 /A // /a 2 ' 4 / f 7 fa J- 7 / 7^ / & ^^7 TT- ^1n^.^, ' / / / / / / / i// ?/ y^ tyfc?»«- 'o' K-d-^i>:f^c^ -J-Cf-€y^ // // // ^ 7 /J/ / /^t 7>J- tA / a J- 3 '7 '^7 THE TRIAL BALANCE A continuous trial balance book is used. This book contains the account titles at the left with columns at the right for the monthly trial balances of a year. Li entering the titles, fol- low the order in the ledger, and leave blank spaces for such pages as are not used. Notes Payable, the first of the financial accounts, would be written on line 21 of the trial balance, and lines 7 to 20 would not be required in the opening trial balance. After entry, if the trial balance proves, you may consider the books opened. USE OF THE GENERAL ACCOUNTS An understanding of the use of the general accounts (those on pages 3 to 20) is essen- tial. Study carefully the follov\'ing facts. Merchandise. Every salable or usable thing produced on the farm (for example, corn, hogs, wheat, fruit, milk, eggs), is charged to this account as soon as the farm process of preparing it is completed. It is then to be disposed of and when so disposed of. Merchan- dise account is credited. Merchandise is the trading account of the farm. Real Estate. The cost of the land, buildings and other permanent improvements and any labor, cash, or property expended upon it is charged to this account. Real Estate is cred- 12 FARM ACCOUNTING itecl with the rental value of real property used in any of the departments, as for dairy, for storage of products, etc. Other values directly from tlie land as wood, wild fruits, etc., would credit to this account. If the' farm is operated to full capacity, the real estate account should show a net profit of 2 to 6 per cent. Chattels. This account is charged with the value of all personal property not pertain- ing to any department of farm work. Such property as is appropriated to any special de- partment is charged to that department and a corresponding credit made to Chattels account. It will be noted that this account would not ordinarily show much gain or loss, but simply rep- resents personal property not classified. Crops. When active farming opens, an account is opened with each crop; as corn, oats, potatoes, etc. Each of these is to be charged with the rental value of land,, seed, labor, and other cost, and credited with product. Dairy. Charged with the cost and maintenance of the milch cows, and credited with the product. Teams. Charged with cost and maintenance of farm draft animals and all farm machiner}' dependent on horse power; and credited with the value of their daily work. Poultry, Garden, Orchard, and all similar accounts are charged with entire cost of rental, stock, labor, etc., and credited with product. Labor. Charged wdth wages and board of laborers and credited when the labor done is distributed to the departments afifected. BLOCKING OUT THE YEAR It is impossible to decide in any one day the entire operations of a year on the farm. But the main divisions of industry can be blocked out on January 1, and such changes as are made from the original plan or additions to it can be considered and entered at a later date. For the purpose of explanation, we will assume that Mr. Atkinson divides the accounts for the year's work as follows : The products of the farm will be charged to Merchandise account together with the rental of the buildings used for storage purposes. Make a journal entry debiting Merchan- dise with inventory Nos. 38 to 51, and 6% on No. 7, crediting Chattels and Real Estate. The following is the entry: :2'^Jj'/j^ ^^;^U^U^ ^^t.-it.-^nf ^t> ■- • / a /A /J.' For the Dairy he will use Building (No. 4), Cows (Nos. 8 to 16), Separator (No. 19), and Churn. and attachments (No. 20), as listed in the inventory. Charge Dairy with 6% on $950 for rental of building one year and credit Real Estate, also with the inventory value of Nos. 8 to 16, 19, and 20 ; and credit Chattels. . Charge Teams account with 6% on No. 3 and with inventory value of Nos. 21 to 25, and 27 to 35 ; crediting Real Estate and Chattels. Charge Hogs account with No. 36 and 6% on No. 5; making proper credits. Charge Poultry with Inventory No. 37 and 6% on No. 6, making proper credit. Charge Orchard with $6 rental on one acre of ground and the trees on it, the latter valued at $120. Credit the entire amount to Real Estate. FARM ACCOUNTING 13 Charge E. A. Atkinson {Personal account) with annual rental on No. 2 at 6% ; credit- ing Real Estate. Note that all property in the inventory has been charged to the departments concerned except the ground use, which is to be charged to crops later, and the items of inventory Nos. 17, 18, and 26 which remain in Chattels account until a use or sale of them is made. Post the entries to the ledger and carry out the balances. Open an accoimt with E. A. Atkinson, personal, in the financial division of the ledger. Be sure to itemize in the ledger what each charge or credit is for. Before going further, glance over the ledger. On the first page, $17881.68 shows that the business owes this amount to the proprietor as net investment. The Cash account shows a debit balance of $129.88 on hand. Merchandise account shows salable products of farm awaiting disposition amounting to $2335.12. Real Estate account shows a balance of $20,326.31 after the several credits are posted. The credits amounting to $410.19 represent 6% of the Real Estate — value in use. When all the fields are put into use, a total credit equal to 6% of the original inventory value should appear. This profit will be reduced by charges for taxes, maintenance, etc. Chattels account shows a debit balance of $250, representing that value of chattels on hand for which no present use is formd. The remaining general accounts should show in the debit column the actual investment in each. The actual invest- ment in each department is of great importance and should be carefully considered with a view to getting returns proportionate to the investment. DAILY REPORTS The memoranda from which current entries are made should be reported daily on cards and the cards held for entry, and after entry they should be placed in a package for possible future reference. The card is so printed as to show where and how long a given person worked during the day, what team work was done, the products resulting from the day's work, and the general business dealings carried out by him. DAILY REPORT No.^:!^ . C?zz-^ tons timothy hay @ $8.75. Jonas Overhurg's report: Labor — 5)4 hr. self and team delivering merchandise, 2^ hr. in care of poultry, 2 hr. in care of teams. Product — 43 eggs gathered. Dealings — Sold for cash 2 tons timothy hay @ $8.50. Sold milk tickets (8 gal.) for cash $2. JANUARY 5 E. A. Atkinson's report: Labor — 8 hr. chopping wood in timber, 2 hr. self and team delivering merchandise, 1 hr. in care of hogs. Product — 2 cords wood. Dealings — Sold for cash 1 cord wood for $6.50. E. P. Johnson's report: Labor — 2 hr. chopping in timber, 4 hr. self and team delivering merchandise, 4 hr. in dairy. Product — 16 posts, 27 gal. milk. Dealings — Sold for cash 79 posts @ 21 cts. Jonas Overbnrg's report: Labor — 5 hr. self and team delivering merchandise, 5 hr. in care of poultry, 2 hr. in care of teams. Product — 35 eggs gathered. Dealings— Sold A. A. Wells & Co. on acct., 12 doz. eggs @ 29 cts. Bought of A. A. Wells & Co., on acct., 1 brl. salt for $2, gluten feed for $5.40. (Debit Mdse. with the pur- chase. ) JANUARY 6 E. A. Atkinson's report: Labor — 4 hr. self and team getting wood from timber, 3 hr. self and team hauling hay to market, 1 hr. in care of hogs, IjA hr. in care of teams. Product — 1 cord wood. Dealings — Sold for cash 1>4 tons timothy hay @ $8.50. Paid Jonas Overburg cash on acct. $l0. E. P. Johnson's report: Labor — 5 hr. self and team getting wood from timber, 5 hr. in dairy. Product — }i cord wood, 13 posts, 25 gal. milk. Jonas Overhurg's report: Labor — 7 hr. self and team delivering merchandise, 1 hr. in care of poultry, 2 lir. in care of teams. Product — 28 eggs gathered. Dealings — Sold A. A. Wells & Co., on acct., 40 bu. potatoes @ 55 cts. Sold milk tickets (20 gal.) for cash $5, also 3 qts. milk for cash 21 cts. JANUARY 7 E. A. Atkinson's report: Labor — 7 hr. self and team getting wood from timber, 2 hr. self and team delivering merchandise, 1 hr. in care of hogs. Product — 50 posts. Dealings — Sold for cash 60 posts @ 20 cts. E. P. Johnson's report: Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairj^ Product — 27 gal. milk. Dealings — Sold for cash 2 cords wood @ $5.75. Sold Goldleaf Creamery Co., on acct.. 23 lb. butter fat @ 25 cts. FARM ACCOUNTING 17 Jonas Overhurg's report: Labor — 6^ hr. self and team delivering merchandise, ly^ hr. in care of poultry, 2 hr. in care of teams. Product — 41 eggs gathered. Dealings — Sold A. A. Wells & Co., on acct., 250 hd. cabbage @ 6 cts. Sold milk tick- ets (16 gal.) for cash $4. WAGE CARD Rate per Hr. IHr. ZHrs. 3Hrs. 4Hrs. 5Hrs. 6Hrs. 7Hrs. 8Hrs, 9Hrs. 10 Hrs. 11 Hrs. 12 Hrs. 10 Cts. 10 20 30 40 50 60 70 80 90 1.00 1.10 1.20 11 " 11 22 33 44 55 66 77 88 99 1.10 1.21 1.32 12 " 12 24 36 48 60 72 84 96 1.08 1.20 1.32 1.44 13 " 13 26 39 52 65 78 91 1.04 1.17 1.30 1.43 1.56 14 " 14 28 42 56 70 84 98 1.12 1.26 1.40 1.54 1.68 15 " 15 30 45 60 75 90 1.05 1.20 1.35 1.50 1.65 1.80 16 " 16 32 48 64 SO 96 1.12 1.28 1.44 1.60 1.76 1.92 17 •' 17 34 51 68 85 1.02 1.19 1.36 1.53 1.70 1.87 2.04 18 " 18 36 54 72 90 1.08 1.26 1.44 1.62 1.80 1.98 2.16 19 " 19 38 57 76 95 1.14 1.33 1.52 1.71 1.90 2.09 2.28 20 " 20 40 60 80 1.00 1.20 1.40 1.60 1.80 2.00 2.20 2.40 21 " 21 42 63 84 1.05 1.26 1.47 1.68 1.89 2.10 2.31 2.52 22 " 22 44 66 88 1.10 1.32 1.54 1.76 1.98 2.20 2.42 2.64 23 " 23 46 69 92 1.15 1.38 1.61 1.84 2.07 2.30 2.53 2.76 24 " 24 48 72 96 1.20 1.44 1.68 1.92 2.16 2.40 2.64 2.88 25 " 25 SO 75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 ENTRIES This completes the week's transactions. Count the cards turned in. Are there twenty- one ? Before making any entries in the summary sheets enter on the cards the wage value of the time spent correct to the nearest cent. Atkinson 24 cts. per hour, Johnson 18 cts.. Over- burg- 14 cts., team 20 cts. Refer to the wage card in making up the distribution of labor expense on each item. Then enter the results shown on the Labor Summary and Team Use Summary and the product on the Product Summaiy. Having distributed the above three itenis, check back journal entries of the transactions which you have made with the entries appearing on the back of the cards. When the entries have been verified, use pencil footings to show the journal in balance. The correct footings for the six columns in their order are $150.78, $29.40, $4672.72, $4615.91, $204.99, $32. Add the debit and credit footings to see if their totals are equal. Subtract the cash credit column from the cash balance shown in last balance book plus debit cash column of journal. After proving the footings, post all entries found in the general debit and credit columns. JANUARY 8 E. A. Atkinson's report: Labor — 2 hr. in care of hogs. E. P. Johnson's report: Labor — 6 hr. in dairy. Product — 27 gal. milk. Jonas 0%'erbiirg's report: Labor — 3 hr. self and team delivering milk, 3 hr. in care of poultry, 2 hr. in care of teams. Product — 32 eggs gathered. JANUARY 9 E. A. Atkinson's report: Labor — 4 hr. self and team getting out wood, 4 hr. self and team delivering posts, 3 hr. in care of hogs. Product — 29 posts. Dealings — Sold for cash 100 posts at 21 cts. ,(^^g^^l9 LABOR Day of Month MEMORANDA Entry Mark Miscellaneous Merchandise Real Estate Chattels Dairy / ;^ ^ ^/ / /i / ^^ ^ r/n f^^ yj ^,? :^./i, ;>^- j^ / ./ •< X X ^ ^ ■X X XL X // ':Z^a^/o.^AZ^%A^. ^ / f^ .r^ /// /v A- /l- ^yOy^.^JZj^'^. a- / ^^ ff^ / ;^^ >'"^ u r^ y^^^^l9 TEAM USE Day of Month MEMORANDA Entry Mark Miscellaneous Merchandise Real Estate Garden Potatoes -^ , K=^ /^ A^ /'^ [^ /^ ^^ ' /^-^ ^ ^^^19 PRODUCTS Day MEMORANDA Enlry Mark MILK KCGS WOOD POSTS Mnntli Uiianfitv Knrnil'ri< Quan F Price Ounn F I'rkc nil an F Price Ouan. F Price / ^-7 // 3^ ^ -^ ^V /' li/ // / y- /7 // j^ - O // / // ./ It 'v/ ;^^ f/ ^^ // ^ // /a- // ^^ 19_ SALES ^^^^ Day of Month 7 MEMORANDA Ouar Amnnnl -//: /2" x^ iiLl ^ ^ / .2 ^^ i:2ii Ouan Amount ^ TIMOTHY ^ ;!' /^ ;^ SUMMARY (Ot'ier .hstributinp is to be written id blank headiags as Deeded) Hogs Poultry n r^^ M t^ tt. rL y£ ^ lA ^/ £Z // lA /I ^ rf SUMMARY (Other distrbution to be written in blank headings as needed) Corn Oats Wheat H ^ SUMMARY (Other distribution to be written in blank headings as needed) Ou.-m- F. Price fjuan. F. Price an, F Price Oiian F Price Ouan, F. Price Lilian. F. Price SUMMARY (Other distribution to be written in blank headings as needed) '^■""D 11-,^'%^;:^:^^ Ih^l^kv^^ ML / 73 // -^ > //J -yy/jJ 20 FARM ACCOUNTING E. P. Johnson's report: Labor — 3 hr. repairing fence, 2 hr. self and team delivering merchandise, 4 hr. in dairy, 1 hr. self and team in care of orchard. Product — 27 gal. milk. Dealings — Sold for cash 1 cord wood for $5.25. Jonas Oz'erbiirg's report: Labor — Gyz hr. self and team delivering merchandise, 1^ hr. in care of poultry, 2 hr. in care of teams. Product — 27 eggs gathered. Dealings — Sold Eagle Hotel, on acct., 12 gal. milk @ 22 cts. Sold milk tickets (12 gal.) for cash $3. Sold W. Cushman, on acct., 1 cord wood for $5.50. JANUARY 10 E. A. Atkinson's report: Labor — 6 hr. self and team delivering merchandise, 1 hr. in care of hogs, 2 hr. in care of teams. Dealings — Sold for cash 180 bu. corn @ 57 cts. Took for personal use from mer- chandise included in first inventory 480 lb. dressed pork @ 9 cts, 300 lb. dressed beef @ G^/ cts. (Charge E. A. Atkinson, Personal.) E. P. Johnson's report: Labor — 8 hr. self and team delivering merchandise, 5 hr. in dairy. Product — 25 gal. milk. Dealings — Sold W. Cushman, on acct., 4 cords- wood @ $5.50. Jonas Overbnrg's report: Labor — :5 hr. self and team delivering merchandise, 3 hr. in care of poultry, 2 hr. in care of teams. Product — 46 eggs gathered. Dealings — Sold A. A. Wells & Co.. on acct., 80 bu. turnips (TC 30 cts., 16 doz. eggs (a) 28 cts. JANUARY 11 E. A. Atlnnson's report: Labor — 7 hr. self and team working in timber, 2 hr. in care of hogs, 3 hr. in care of teams. Dealings — Sold W. Cushman, on acct., 3 cords wood @ $5.50, on ground. E. P. Johnson's report: Labor — 10 hr. self and team working for A. A. Wells & Co., 1 hr. in care of teams. (Enter the time on labor card, filling in the memo space, "work for A. A. Wells & Co.") Dealings — Bought of A. A. Wells & Co., on acct., bill of goods for E. A. Atkinson's personal use, $29.61. Debit A. A. Wells & Co., 1 day for man and team (man $1.80, team $3) $1.80. The journal entry will be "A. A. Wells & Co., Dr. $4.80; Labor Cr. $1.80; Teams Cr. $3." Place check marks ( V ) in the folio column next to Labor and Teams, to indicate that these credits will not be posted separately but will appear in the total credits of these titles for the month as posted from the summary books. Jonas Overbnrg's report: Labor — 4 hr. self and team delivering merchandise, 6 hr. in dairy, J^ hr. in care of poultry. Product — 22 gal. milk, 23 eggs gathered. Dealings — Sold Eagle Hotel Co., on acct., 12 gal. milk @ 22 cts. Sold milk tickets (20 gal.) for cash $5. JANUARY 12 E. A. Atkinson's report: Labor — 4 hr. self and team delivering merchandise, 5 hr. in dairy, ^4 hr. in care of hogs. Product — 24 gal. milk. Dealings — Sold W. Cushman, on acct., 2 cords wood @ $5.50. Sold Goldleaf Cream- ery Co., on acct., 11 lb. butter fat @ 26 cts. Paid E. P. Johnson Cash on account $20. E. P. Johnson's report: Labor — 10 hr. self and team working- for A. A. Wells & Co., 1 hr. in care of teams. Dealings — Debit A. A. Wells & Co. for 1 day for man and team $4.80. FARM ACCOUNTING 21 Jonas Overhnrg's report: Labor — 6 hr. self and team delivering merchandise, 1 hr. in care of poultry, 2 hr. in care of teams. Product — 33 eggs collected. Dealings — Sold 1 cord wood for cash $6. Sold milk tickets (8 gal.) for cash $2. JANUARY 13 E. A. Atkinson's report: Labor — 2 hr. in timber, 9 hr. self and 7 hr. team delivering merchandise, Yz hr. in care of hogs. Dealings — Sold W. Cushman, on acct., 4 cords wood @ $5.50. E. P. Johnson's report: Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairy. Product — 26 gal. milk. Dealings — Sold W. Cushman, on acct., 3 cords wood (@ $5.50. Jonas Overhnrg's report: Labor — 7^^ hr. self and team delivering merchandise, J4 hr. in care of poultry, 2 hr. in care of teams. Product — 26 eggs gathered. Dealings — Sold for cash 2 cords wood for $12.25. JANUARY 14 E. A. Atkinson's report: Labor — 9 hr. self and team at auction sale, which he distributes as follows: Dairy 3 hr., hogs 3 hr., teams 3 hr. Dealings — Bought for cash 1 cow for $39.50 (Dairy), 1 set harness for $14.25 (Teams), 6 shoats for $31.50 (Hogs), sundry household articles for $3.90 (Atkinson Per- sonal ) . E. P. Johnson's report: Labor — 4 hr. working in timber, 3 hr. self and team delivering merchandise, 4 hr. in dairy. Product — 27 gal. milk, 5 hogs (farm weight 1605 lb.) Dealings — Sold for cash 5 hogs weighing 1568 lb. @ $8.40 per cwt. (Credit Mdse.) Jonas Overhnrg's report: Labor — 5j^ hr. self and team delivering merchandise, 2iX hr. in care of poultry, 2 hr. in care of teams. Product — 34 eggs gathered. Dealings — Sold for cash 50 bu. corn @ 56 cts. Sold milk tickets (16 gal.) for $4. Count the week's tickets to see that all are in — 21 in number. Review your journal entries, to see that all dealings have been recorded. Foot the journal column to see that the journal is in balance. What is your cash balance? Post the general accounts from the journal, but do not post the special column accounts until the close of the month. Referring to the report cards, extend the amount of each labor item, and make the re- Cjuired entries in the summary books as you were instructed to do on Jan. 7. On Jan. 9, place Johnson's labor 1 hr. in orchard in miscellaneous column. On Jan. 11 and 12 place E. P. Johnson's time for working for Wells & Co. in the miscel- laneous column followed by the initial "J," indicating that the charge against Wells & Co. has already been made through the journal. The two day's use of team is entered in like man- ner in the team use summary. Observe that the summary books have one miscellaneous column each for unusual items, with a memorandum space before the item to show what it is for. The two day's labor, man and team, for Wells & Co. would be itemized in this column. Remember that the totals of all labor columns will at the end of the month be posted to the credit of Labor accotmt, and of all special columns to the debit of the department named at the head of the column with tlie exception of the miscellaneous column, the debits of which, if they concern a personal ac- count, are posted from the journal, as it is frecjuently desirable to have such items posted on 22 FARM ACCOUNTING the date of the transaction. If a department is affected, the posting will be done at the end of the month. Observe further that the summary books have a number of columns without printed heads. These columns are to be headed by the bookkeeper at certain seasons of the year when other departments become active. Thus, wheat crop, oats crop, corn crop, woulcl re- quire much time during certain months and would not be regarded during other months. Likewise, the columns Wood and Posts in the product summary will at a later date be dis- continued. The departments requiring constant entries have printed heads in the summary books. You may now foot in- pencil the summarv columns, adding in the pencil footings of the 7th. As an experiment, add the footings of the labor summary and see if the labor actually reported agrees with one-half of your monthl}^ pay roll of $140. If it runs behind, investi- gate. What value have you received from teams to date? Is the output of milk what should be expected ? Is the yield of eggs satisfactory ? Note that Overburg is spending less time attending to poultry than formerly. Foot in pencil A. A. Wells & Co.'s account, to see how it stands. Has W. Cushman still a credit balance? How much has E. P. Johnson received? The Eagle Hotel Co. ordered milk only twice. Wh_y do they not order regularly? Ask Overburg. Does the Goldleaf Creamery Co. owe us $15.09 or $16.09? They settle by check monthly. Do we owe any notes due soon ? How much cash is on hand ? A person keep- ing books should form the habit of looking to his books for information about his business. JANUARY IS E. A. Atkinson's report: Labor — 3^ hr. in care of hogs, ^ hr. in care of poultry, Ij/a hr. in care of teams. Product — 31 eggs gathered. E. P. Johnson's report: Labor — 4 hr. in dairy. Product — 28 gal. milk. Jonas Overburg' s report: Labor — 3 hr. self and team delivering merchandise. JANUARY 16 E. A. Atkinson's report: Labor — 3 hr. self and team getting wood from timber, 3 hr. self and team delivering merchandise, 4 hr. in care of hogs. Product — 2 cords wood, 26 posts. Dealings — Sold W. Cushman, on acct., 100 posts @ 21 cts. Paid cash in full of the bank note due yesterday. (No interest.) E. P. Johnson's report: Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairy. Product— 28 gal. milk. Dealings — Sold for cash 2 tons timothy hay @ $9. Jonas Overburg' s report: Labor — 4 hr. self and team delivering merchandise, J4 hr. in dairy, 2 hr. in care of teams, 1^ hr. in care of poultry. Product — 30 eggs gathered. Dealings — Sold milk tickets (20 gal.) for cash $5. JANUARY 17 E. A. Atkinson is sick. (Make pencil memo in his ledger account.) E. P. Johnson's report: Labor — 6 hr. self and team 2 hr. and 3 horse team 4 hr. getting wood out from timber, 4 hr. in dairy, I/2 hr. in care of hogs. Product — 27 gal. milk, 3 cords wood, 28 posts. Jonas Overbnrg's report: Labor — 8 hr. self and team delivering merchandise, 3^ hr. in care of jXJultr)^, 1 hr. in care of teams. FARM ACCOUNTING • 23 Product — 37 eggs gathered. Dealings — Sold W. Cushman, on acct., 100 posts @ 21 cts. Sold milk tickets (8 gal.) for cash $2. JANUARY 18 E. P. Johnson's report: Labor — 4 hr. self and team getting out wood from timber, 2 hr. self and team delivering merchandise, 4 hr. in dairy, J/4 hr. in care of hogs. Product — 26 gal. milk, ^ cord wood. Dealings — Sold for cash 2 tons timothy hay for $17.75. Sold to the Goldleaf Creamery Co., on acct., 16 lb. butter fat @ 25 cts. Jonas Overhurg's report: Labor — 5 hr. self and team delivering merchandise, ly, hr. in care of poultry, 2 hr. in care of teams. Product — 26 eggs gathered. Dealings — Sold 1 cord wood for cash $5.50. Sold to A. A. Wells, on acct., 20 doz. eggs @ 29 cts., milk tickets (12 gal.) for cash $3. JANUARY 19 E. P. Johnson's report: Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairy, i^ hr. in care of hogs. Product — 27 gal. milk. Dealings — Sold 2 tons timothy hay for cash $17.25. Jonas Oz'erbnrg's report: Labor — 6 hr. self and 2 teams delivering merchandise, 3^ hr. in care of poultry, 2 hr. in care of teams. Product — 26 eggs gathered. Dealings — Sold 1^4 tons timothy hay for cash $10. Sold milk tickets (12 gal.) for cash $3. JANUARY 20 E. P. Johnson's report: Labor — 6 hr. repairing fences, 4 hr. in dairy, yi hr. in care of hogs. Product — 26 -gal. milk. Dealings — Sold to A. A. Wells & Co., on acct., 2^/4 tons timothy hay @ $8.50 on the ground. Jonas Overburg's report: Labor — 8^ hr. self and team delivering merchandise, 3^ hr. in care of poultry, 2 hr. in care of teams. Product — 27 eggs gathered. Dealings — Sold to James Goodwin, on acct., 100 bu. corn @ 59c. Sold milk tickets (8 gal.) for cash $2. JANUARY 21 E. P. Johnson's report: Labor — 4 hr. self and team delivering merchandise, 4 hr. in dairy, ^ hr. in care of hogs. Product — 24 gal. milk. Dealings — Sold 3 tons timothy hay for cash $26. Sold the Goldleaf Creamery Co., on acct., 26 lb. butter fat @ 26 cts. Jonas Overhurg's report: Labor — 4 hr. self and team delivering merchandise, 4 hr. in care of poultry, 2 hr. in care of teams. Product — 29 eggs gathered. Dealings — Sold Mrs. Jane Cramer, on acct., milk tickets (4 gal.) $1. Sold milk tickets (28 gal.) for cash $7. Enter the week's reports as before. JANUARY 22 E. P. Johnson's report: Labor — 4j4 hr. in dairy. Product — 25 gal. milk. 24 FARM ACCOUNTING Jonas Ovcrhurg's report: Labor — 5 hr. self and team delivering merchandise, 1 hr. in care of- hogs, 1J4 hr. in care of poultry, 2 hr. in care of teams. . Product^27 eggs gathered. Dealings — Bought of A. Gregory, on acct.. 10 gal. milk @ 16 cts. Sold milk tickets (28 gal.) for cash $7. JANUARY 23 E. P. Johnson's report: Labor — 8 hr. self and team delivering merchandise, 4^/2 hr. in dairy. Product — 25 gal. milk. Dealings — Sold for cash 2 cords wood for $12.40. Jonas Ovcrhurg's report: Labor — 5 hr. self and team delivering merchandise, 1 hr. in care of hogs, ^ hr. in care of poultry, 3 hr. in care of teams, 4 hr. for Mr. Atkinson personally (charge to Atkinson's personal account through labor summary at close of month.) Product — 28 eggs gathered. Dealings — Sold A. A. Wells & Co., on acct., 8 doz. eggs @ 30 cts. Sold milk tickets (32 gal.) for cash $8. Bought of A. Gregory, on acct. 8 gal. milk @ 16 cts. JANUARY 24 E. P. Johnson's report: Labor — 7 hr. self and team delivering merchandise, 5 hr. in dairy. Product — 26 gal. milk. Dealings — Sold A. A. Wells & Co., on acct., 62 bu. oats @ 36 cts., 45 bu. potatoes @ 49 cts. Jonas Ovcrhurg's report: Labor — 3 hr. self and team getting out wood from timber, 5 hr. self and team deliver- ing merchandise, 1 hr. in care of hogs, J/^ hr. in care of poultry, IJX hr. in care of teams. Product — 31 posts, 27 eggs gathered. Dealings — Bought of A. Gregory, on acct., 12 gal. milk @ 16 cts. Sold Mrs. Jane Cramer, on acct., milk tickets (4 gal.) $1. Sold Eagle Hotel Co., on acct., 10 gal. milk @ 22 cts. Sold milk tickets (20 gal.) for cash $5. JANUARY 25 E. P. Johnson's report: Labor — 7 hr. self and team delivering merchandise, 4j^ hr. in dairy. Product — 25 gal. milk. Dealings — Sold l^i tons prairie hay for cash @ $5.25. Sold to A. A. Wells & Co., on acct., 61 bu. turnips @ 30 cts. Jonas Ovcrhurg's report: Labor — 2^ hr. chopping wood in timber, 5 hr. self and team delivering merchandise, y2 hr. in care of hogs, 1 hr. in care of poultry, lj4 hr. in care of teams. Product — 23 eggs gathered. Dealings — Bought of A. Gregory, on acct., 8 gal. milk @ 16 cts. Sold milk tickets (32 gal.) for cash $8. JANUARY 26 E. P. Johnson's report: Labor — 6j4 hr. self and team delivering merchandise, 5 hr. in dairy. Product — 26 gal. milk. Dealings — Sold W. Cushman, on acct., 100 posts @ 21 cts. Jonas Ovcrhurg's report: Labor — 4j^ hr. self and team delivering merchandise, yi hr. in care of hogs, 2 hr. in care of poultry, lj4 hr. in care of teams, 2 hr. work for Mr. Atkinson. Product — 26 eggs gathered. Dealings — Bought of A. Gregory, on acct., 10 gal. milk @ 16 cts. Sold Eagle Hotel Co., on acct., 10 gal. milk @ 22 cts. Sold milk tickets (16 gal.) for cash $4. JANUARY 27 E. P. Johnson's report: Labor — 7 hr. self and team delivering merchandise, AjA hr. in dairy. FARM ACCOUNTING 25 Product — 26 gal. milk. Dealings — Sold for cash 87 bu. wheat @ 96 cts. Paid cash for repairs on wagon $3.50. Jonas Overburg's report: Labor — ^^5 hr. self and team delivering merchandise, 1 hr. in care of hogs, 1 hr. in care of poultry, 1 hr. in care of teams, 2 hr. work for Mr. Atkinson. Product — 29 eggs gathered. Dealings — Sold Goldleaf Creamery Co., on acct., 15 lb. butter fat @ 26 cts. JANUARY 28 E. P. Johnson's report: Labor — 7 hr. self and team delivering merchandise, 4^ hr. in dairy. Product — 25 gal. rtiilk. Dealings — Sold for cash 98 bu. corn @ 57 cts. Paid Dr. Burrows cash $25 for Mr. Atkinson's account. Jonas Oz'erbnrg's report: Labor — 6 hr. self and team delivering merchandise, J4 hr. in care of hogs, 1^ hr. in care of poultry, lyi hr. in care of teams, 1 hr. work for Mr. Atkinson. Product — 24 eggs gathered. Dealings — Sold milk tickets (16 gal.) for cash $4. Enter the week's report as before. Note that the charges for labor for E. A. Atkin- son, personal, may be made through the summary book, as there is no haste in posting this account. AA^rite his name at top of the next unused column in summary book and carry charges as in other columns. The work for the three remaining days of the month will now be taken up, after which the month's summaries will be journalized and posted, and a trial balance will be taken. Note that Johnson and Overburg carry out some unusual transactions which the student should take time to enter correctly. JANUARY 29 E. P. Johnson's report: Labor — 5 hr. in dairy. Product — 26 gal. milk. Jonas Overburg's report: Labor — 5 hr. self and team delivering merchandise, 1 hr. in care of hogs, 1^ hr. in care of poultry, 2 hr. in care of teams. Product — 19 eggs gathered. JANUARY 30 E. P. Johnson's report: Labor — 7 hr. self and team delivering merchandise, 4^4 hr. in dairy, 1 hr. work for Mr. Atkinson. Product — 24 gallons milk. Dealings — Sold for cash 2 cords wood for $12.75, kept out cash $5 on account, paid from cash collected for wood $2 to drug store for items for Mr. Atkinson. Jonas Overburg's report: Labor — 6 hr. self and team and 2 hr. use of one extra horse in delivering merchandise, 1 hr. in care of hogs, 1 hr. in care of poultrv, 2 hr. in care of teams. Product — 18 eggs gathered. Dealings — Sold milk tickets (16 gal.) for cash $4. Sold Eagle Hotel Co., on acct., 12 gal. Milk @ 22 cts. Sold E. A. Atkinson, on acct., milk tickets (16 gal.) @ 16 cts per gal. In reporting cash with his ticket, Overburg could produce only $2.95; charge him with the shortage. JANUARY 31 E. P. Johnson's report: Labor — 5 hr. self and team delivering merchandise, 4^ hr. in dairy. Product — 23 gal. milk. •Dealings — Took 20 bu. wheat to mill (estimated at market price, 96 cts. per bu.) and brought back 227 lb. bran and shorts (charge to Merchandise at $1.20 per cwt.) and 455 lb. flour (charge to E. A. Atkinson, personal, for the difference between the market value of the 26 FARM ACCOUNTING wheat and the value of the feed taken out.) Bought of A. A. A-Vells & Co. on Atkinson's account 1 pair of gloves at 80 cts., for Johnson's personal use. Jonas Overhurg's report: Labor — 5 hr. self and team delivering merchandise, y2 hr. in care of hogs, 1 hr. in care of poultry, 2 hr. in care of teams, 1;^ hr. work for Mr. Atkinson. Product — 22 eggs gathered. Dealings — Sold Mrs. Jane Cramer, on acct., milk tickets (4 gal.) $1. Sold milk tickets (32 gal. (a) 25 cts.) for cash and reports cash $6.75. Sold Goldleaf Creamer)^ Co., on acct., 18 lb. butter fat @ 27 cts. Enter last three days, which close the month, on the same plan as the preceding weekly reports. CLOSING THE MONTH Cash: Mr. Atkinson, who is assumed to have charge of the cash, finds that the stub of his bank check book shows that his cash balance in the bank is $495.67 and he has cash in pocket $61.19, making total cash $ The cash carried over from last month (see trial balance book), plus the debit cash footing of the current month, less the credit cash footing equals $ showing the actual cash on hand short $ Charge the shortage to E. A. Atkinson's personal account and credit cash. Products: From the products summary compute the totals of the different columns at farm prices: Milk at 16 cts. per gal, Eggs at 26 cts. per doz.. Wood at $5 per cord, Posts at 18 cts. each, Hogs at $7.55 per cwt. Charge their total to Mdse. (general column) and credit the respective accounts affected; i. e.. Real Estate, Dairy, Hogs, and Poultry. (In charging and crediting departments from the summaries, enter the titles in the order of the ledger accounts for convenience in posting. See model.) Feed: E. P. Johnson turns in feed ticket for the month which reads as follows : Business Dealings /a Oa "^'^yS-i^.z^yi^ j::^>CA^-UC^ ^ a. J.-^^ ^-c^;?^ ^d '-A'i^ '~i&'i:^-d^r?y' /^^ /^/ 1Q1 ry^t.'g^g-^^^^-j^g/ U^^ .^Z^^>2^"^l^^^!^'-^^^-^>^^^^y ^-l^'i^.CA^ j'y / Za. Estimate the feed used at inventory prices. Overburg turns in a feed ticket as follows : Feed for horses for month : Timothy hay 3100 lbs., Prairie hay }^ ton, corn 25 bu., oats 35 bu. Sundries from mdse. $3. Feed of Poultry charged with inventory No. 38 in full. Mr. Atkinson makes out the following ticket : Feed of Chattels for month: Prairie hay 1J4 tons, Clover ^ ton. Corn 20 bu., Oats 10 bu. Feed of hogs for month : Corn 65 bu., Oats 30 bu., skim milk 330 gal. at 5 cts. Journalize as in model. Labor Charge: Atkinson also makes a ticket crediting E. A. Atkinson 3^ month wages, Johnson full month and Jonas Overburg full month at the prices agreed upon which are (or should be) noted in their ledger accounts. On the same ticket he enters a memo, "Labor acct. Dr. to E. A. Atkinson, Personal, board Johnson and Overburg 1 month $30." Labor Distribution: Foot the labor summary and charge each department according to headings crediting Labor with entire amount as in model. FARM ACCOUNTING 27 c/f /a^/ Sh //J' Z / 2 Z y^ZZy1^,^-t^:lZ^^-&zL.i<>v'rv-r>'L^c.i.^^e^ '-i^i^-n^^/i^ii^ i_ TT^tsxr;'^, •^^2,g2^(^:^^'C/i:-*2^™/2^^j!^ tyk^z-^r>-z_(j^ v' 4/aV /^7 // ^^ ' ^-<^ . '^^■J'a jA - ^ -^:^^^g^-^;g-^ X -^OL-t^iAlt^i.^ /a / / U^ (^Aga<>yz^^-'^L«^r;^-Evgg>^«'-<'y^ oa a ^tA ^^ 4.<^7^-^ . ^- fo. C^ J^/-z:>7-^^-rT-d-i'-'^!^ '!)yCc.yt^t^,i.^t^Z^ff^'--p-z--f-.-L ■4^^^ _^ ^7^L-.=^^^>t-Sj^ ^ ■T^i>'i<.£z:UY ;^^ . Zz2 (^<.tLJl..f2^ .J-i^^-AzJ- /^^A^- J^-z^./^^ zAj'^^ ZjL .aC^y^JU-^-c^i^-Jz^ ^ -Mjmjj lA -^^^-^-^g^^l^^yz^ "-<^-Az^ •^Z-e/ 1 2 /^ /^ ■Z?g^^,-y-^o%W^»^Z^^, /. r '//i^7^y.^J^^^ -U / "S^^^^AJA^^ ^ (^,a- II. ^^v£^-^->->- y AMZJ^.rJ^tyr- Jffi V^Z-A^-i!> fa^^^zi^gz-i^.,^ '9Le.y-^-Mtx.^,:^>