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Farm livestock expense, 291, totals of:
Horses and mules, 291A.
Cattle and livestock, 291b.
Poultry, 291C.

Farm fertilizers and sprays, 253.

Farm rent, 292.

Farm repairs and maintenance, 293, totals of:

Improvements to farm lands, repairs and maintenance, 293A.
Buildings, repairs and maintenances, 293B.

Machinery and equipment, repairs and maintenance, 293C.
Farm depreciation expense, 294: Totals of:

Improvements to land depreciation expense, 294A.

Buildings depreciation expense, 294B.

Livestock depreciation expense, 294C.

Machinery and equipment depreciation expense, 294D.
Farm general expense, 295.

Oils and gasoline, 295A.

Fuel, light and power, 295B.

Water purchased, 295C.

Telephone and telegraph charges, 295D.
Miscellaneous expense, 295E.

Farm insurance expense, 296, Totals of:
Building insurance, 296A.
Crop insurance, 296B.

Livestock insurance, 296C.
Liability insurance, 296D.

Farm taxes, real and personal property, 297.

Post all the above entries, balance farm profit and loss account and bring forward the balance as: "Total Farm Operating Costs."

Schedule 2-Farm Income Subject to Income Taxes

Debit each of the accounts following:

Credit farm profit and loss, 310.

Farm green produce sold, 300.

Farm incidental sales and income, 301, Totals of:

Horses and mules, 301A.

Cattle and livestock, 301B.
Poultry and eggs, 301C.
Miscellaneous, 301D.

Post all the above entries, balance farm profit and loss account and bring forward the balance as: "Total Farm Income Subject to Income Taxes."

Schedule 3-Total Farm Operating Profit for Year

Debit profit and loss, 310; Credit unallowable expense, 302 with the balance of unallowable expense, 302; balance and bring forward the total as "Total Farm Operating Profit for Year."

Transfer the total operating profit (or loss) to surplus earned.

Closing Entries Farm Accounts

1. Debit farm depreciation expense, 294. Improvements to farm lands depreciation, 294A. Buildings depreciation, 294B.

Livestock depreciation, 294C.

Machinery and equipment depreciation, 294D.

Credit the proper provision account with the amount of depreciation as figured by using the following percentages:

Improvements to land, 261:
Deep wells..
Orchard trees
Irrigating pipe lines

Buildings, wooden.

Buildings, concrete or brick.
Barns and outhouses..

(depletion) 10 per cent

3 to 6 per cent (by variety)
10 per cent

10 per cent

5 per cent

4 per cent

10 per cent

Livestock, see account, 273.

Machinery and equipment, see account, 272.

2. The inventory taken at the close of the fiscal year will contain full detail of the amount of unearned insurance.

Debit farm unearned insurance, 280; Credit farm insurance expense, 296.

3. Debit unallowable expense, 302; Credit each of the following


Farm interest on investment, 303.
Farm contingent expense, 304.
Farm income tax expense, 305.

with the balance of each of these accounts.

4. Make closing journal entries of farm profit and loss accounts in the order and manner as set forth in the farm profit and loss account, 310, making separate journal entries for each item, using the exact form shown in the account.

Assignment No. 3
Inventory Taking

The factory should discontinue all operations, as far as practical, during, and for at least a week prior to, the taking of the inventory.

During this week the factory superintendent should supervise the cleaning up of the entire factory, segregating and assembling all stocks in such manner that an accurate count can be made of all stocks to be inventoried with the least possibility of error. The inventory should be completed not later than the fifth day of the month following the last day of the fiscal year.

The stocks to be inventoried will include the finished goods loose in stacks and cased up ready for shipment, cans, can covers, glass bottles, jars, bottle caps, lye, condiments, sugar, salt, spices, vinegar, labels,

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paste, nails, strapping, silicate, box shook, caps, gowns, aprons, cutlery, gloves, all employees supplies, fuel oil, packing, lubricating oil, disinfectants, soaps, toilet supplies, towels, barrels, trays, lacquer, box ink, dish pans, cutting pans, cutting boxes, small wooden or metal trays, etc.

Do not inventory small tools as these should be charged to factory expense, 148A, at the time of their purchase and as they are subject to loss need not be taken into inventory. Do not inventory portable equipment as all new purchases of portable equipment will be charged to the investment account 27G, and all repairs will be charged as an expense to account 148D, and need not be inventoried. Do not inventory paints, oils, turpentine, or any article purchased for repair work as these should be charged to repairs and maintenance at the time of their purchase. This only applies to cases where it is not intended to carry a stock of repair materials. Where a storeroom is maintained and a stock is always kept on hand for emergencies such stock should always be inventoried and credited back to the account to which it was orginally charged.

All empty cans should be either cased up, or stored in evenly squared off piles so as to be readily and easily counted. If cased up the size of the cans in each stack should be plainly and permanently marked on the outside boxes in each lot. Can ends should also be boxed up and each size piled separately and marked by nailing one of the ends to the outside of a box in each of the lots.

When taking the inventory the stocks to be enumerated will be classified to correspond to the accounts as kept in the ledger. These classifications will be as follows:

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Do not inventory small tools, paints, oils or portable equipment. except as explained above.

2-Warehouse Accounts

Label stock account.
Paste stock account.

Boxes and shook stock account.

Nails, strapping and silicate stock account.

3-Finished Goods

Canned goods, loose in stacks.

Canned goods cased up ready for shipment.

4-Power Plant Expense

Fuel oil.

Sundries, new packing, etc.

Lug boxes should be inventoried as it is essential to know the quantity on hand so that this quantity can be kept at the original figures as shown by the investment account, 28. If it is necessary to make, or purchase, any lug boxes to adjust any discrepancy in the original quantity and the quantity on hand as determined by inventory the cost of such boxes should be charged to lug box repairs and renewals, 90E.

The lug boxes inventoried will be carried in the inventory as a memorandum.

The superintendent will, with the assistance of the foreman of each department, proceed to inventory the stock by classification.

Inventory classification cards should be printed and these should now be given to the superintendent. These cards will be in two forms printed on cardboard of a quality to be written on and should be 4 by 6 inches in size. A small hole should be punched in the top of the card for tying and under this should be printed "inventory classification card, general" on one form and "inventory classification card, canned goods," on the other. "Card No." should be at the left upper corner for numbering purposes and down the left side should be printed on the "general" card the following "classification," "article," "size," "packages," "quantity," "remarks," "counted by," and "checked by."

On the "canned goods" card should be printed, "classification,” "variety," "grade," "size," "size,” “quantity," "remarks," "counted by," and "checked by."

The general card will be used for inventoring all stock except canned goods in the warehouse for which the canned goods card will be used. The superintendent will number a lot of each of these cards consecutively from one up, and starting with group one of the classification, the foreman and superintendent together will inventory each group in the order given, fill out a card and attach it to the lot in such manner that it can be readily removed without injury. The superintendent will not fill in the classification numbers as this will be done in the office.

On the following day the stock clerk from the office and an assistant will proceed to check the count of the superintendent and foremen. Starting with tag number one, they will remove each tag in numerical order, checking the size, description and quantity as filled in on the card by the superintendent and also keeping a close lookout for any stock passed over and not counted.

The stock clerk should be provided with printed gummed lables called "inventory pasters," and these, like the cards, will be in two forms. They should be 21⁄2 by 3 inches in size, printed on gummed paper. Down the left side will be printed "Card No." "article," "size," "packages," and "quantity," on one form, and on the other "Card No.," "variety," "grade," "size," and "quantity." The first will be for general and the second for canned goods.

As the stock clerk removes the inventory cards from the lot, or stacks, he will fill out one of the pasters and stick it on in place of the card in such manner that it cannot be easily removed. These labels will be found very convenient later, especially those on the finished goods in the warehouse, as the foreman will be able to see at a glance the quantity of cases in any stack without the necessity of reference to the inventory book.

If the clerks discover an error in any card, they will, before removing such card, call the superintendent and the foreman who made the count, and together they will recheck the lot and correct the error before proceeding further.

When all tags have been removed they will be sent to the office where the stock clerk will go over them, filling in the proper classification number and making up the inventory sheets from them. The inventory sheets should show the canned goods loose in stacks and cased up separately.

Canned goods that are sold and invoiced to the buyer prior to the close of the year but which are not yet shipped will be found in the "warehoused goods record." A memorandum warehouse receipt should already have been issued for such goods.

If these warehoused goods are cased up ready for shipment simply deduct the total of each variety and grade from the inventory of cased up canned goods, noting such deductions as "warehoused goods."

If such warehoused goods are loose in the stacks, deduct the total of each variety according to grade from the inventory of canned goods loose in the stacks, noting such deductions as "warehoused goods.'

Warehoused goods both loose in the stacks and cased up should be carried on the inventory as a memorandum. The quantity loose in the stacks will be required in figuring the "provision to complete finished and unshipped goods, 115."

All canned goods that are loose in the stacks and sold on contract but that are not yet invoiced to the buyer and all canned goods loose in the stacks and unsold will be required in figuring the "provision to complete finished and unshipped goods, 115."

After deducting the warehoused goods, both loose in the stacks and cased up, from the total canned goods as inventoried the remainder will be the net inventory of canned goods belonging to the company and these net amounts only should appear in the inventory and be priced.

All canned goods in the finished goods inventory will be considered as cased up ready for shipment as the provision for finished and unshipped goods, 116, provides for this. In pricing the inventory the price used

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