Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-27

to the same accounts in the financial
record, multiplying each total by the
rate to obtain the cost. These items
should be credited to labor in the
financial record book. When -; is
completed, the labor account should
balance within a few dollars, though
if the rate per hour were carried out
in fun to the last decimal place the
account would balance. A difference
Of one mill in the rate for 5000 hours
would make a difference of SIS in the
final results, and a difference of one
tenth Of a mill would make differ
ence of so cents. This difference or
error is not important enough to con-
slider. 1t may he carried to the loss
and gain account. or it may be
added to or subtracted from one of
The larger items of labor. in accord
ance with whether it is a loss Or
gain.
90 All the hours and minutes of
horse labor spent on each enterprise,
including any horse labor on chores,
should be added up, these totals being
brought together and the sum of the
horse hours on all enterprises found.
just as was done Tor man labor.
1S) To find the total cost of horse
labor, first the horse inventories
should be entered, the first inventory
as a charge and the second as
credit to the horses. Then the horses
should be charged with interest on
the average of the two inventories at
the current rate in the section and
the interest account credited. The
ordinary rate charged in most parts
of the United States is or per cent.
on the investment.
a9) The sum of each side of the
horse account should be found The
sum of the credits should be sub
tracted from the sum of the charges
and the difference will be the net cost
of horse labor for the year. No charge
is made against horses for the use of
the harness and other horse equip
ment, all these costs being charged
against the various enterprises in the
machinery charge, as hereafter eX-
planned on the basis of horse hours.
GOD The rate per nour of horse la
Dor should be found by dividing the
total cost by the total hours The
figure thus obtained is the rate per
hour.
Horse Hours for Each Job.
(2D The total number of horse
hours found against each enterprise
in the work record should be trans
ferred to the same accounts in the
financial record, multiplying each
total by the rate to obtain the cost.
These items should be credited to the
horse account in the financial record
hook. When this is completed, the
horse account should balance within
a few dollars. The reason for the
failure to balance is the same as that
already given for man labor. To make
the account balance, the dlfference
can be added to or subtracted from
one of the larger items or carried TO
the Loss and gain" account, as stated
in paragraph 16.
(22) To find the use cost OF the
machinery, the first machinery IN
ventory should be entered as charge
and the second as credit TO the ma
chinery account, then TINS accou I.s
should be charged with interest on
the average of the two inventories,
as directed for the horse account
The interest account should be
credited with the amount of this IN
(2S( The. sum of each side of the
machinery account should be found
and the credit total subtracted from
the charge total, the same as tor the
horse account. The difference is the
total use cost of the machinery Tor
the year.
f2G In order to distribute this cost,
i NAV be assumed that for every
hour horses were worked machinery
was also used. Then each account
will have charged against 1T the same
number of machinery hours as horse
hours. To find the rate of cost per
machinery hour, the horse hours az
ready charged to machinery shoulu
he first subtracted from the totai
hours of horse labor and the total
cost of machinery use divided by this
10
for the year should be charged in the
same way that the use of horses
was charged. except the charge
against machinery. When TINS is
comnlete. the machinery account
should balance within a few dollars.
The difference may be treated as eA-
planned in paragraph sixteen.
(25) Any other account OF con-
venience, such as those for fertiilzer
or manure, if kept, should De ulstrl'
buted.
The Matter of Inventories.
(26) All the remaining items should
he entered in the inventories. me
inventory values for abe beginning OF
the year should be entered on the
Ieft-hand page of the separate ac-
counts as a charge that is, the COW
inventory should be entered on the
left-hand' page of the COW account,
the hog inventory on the left-hand
page of the hog account, and the
others distributed in the same hhdh-
ner. The final inventory for the year
is likewise distributed to the separate
accounts, but the items are entered
on their respective right hand pages.
(27 The interest, based on the aV-
erage inventories against all accounts
not already charged, should be
charged and the interest account cred
tied with the total, using the same
rate as that used in charging interest
against The horse and machinery ac-
count
(2S) The proper charge for the use
of the land should be entered. Inc
rate should be high enough SO mat;
with the use of buildings as charged
in paragraph II, it will cover interest,"
on the investment in land and pulia-
ings, taxes on real estate anu re-
pairs to buildings and fences, for
these items were charged to the real
estate account. Each crop should be
charged for the land it occupied and
the real estate account credited.
f29) Both sides of the account not
vet closed should be footed up. Inc
lesser total should be subtracted from
the greater in each account. Ii the
charge side is greater the dlfterence
represents a loss, and If the credlt
side be greater gam.
500 A list of the losses and gains
should be made and the total of each
found in order to show the net gain
or loss on the whole business
(3D Each account and the business
as a whole should be studied in order
to learn how to improve It
study and Interpretation OF Results
Farm accounts are of little use I'M
less studied and conclusions drawn
which will enable one to make ms
business more profitable in the