Publications > Forest Landowners Guide to the Federal Income Tax, Ag. Handbook No. 718
Figure 15-1. Evergreen Tree Farm: Journal
| Date | Accounts and Explanation | Ref. | Debits | Credits |
| 06/01/93 | Temporary Capital Account | 1 | 2,500 | |
| Cash | 2,500 | |||
| E.Z. Cruiser, Consultant for forest land appraisal report | ||||
| 06/01/93 | Temporary Capital Account | 2 | 275,000 | |
| Cash | 75,000 | |||
| Mortgage Payable | 200,000 | |||
| Purchase Evergreen tree farm | ||||
| 06/15/93 | Temporary capital account | 3 | 4,000 | |
| Cash | 4,000 | |||
| L. Lawyer, attorney for title search, filing, and closing | ||||
| 06/21/93 | Evergreen tract (Figure 15-2) | 5 | 59,537 | |
| Merchantable sawtimber (Figures 15-3 and 15-6) | 6a | 161,834 | ||
| Merchantable pulpwood (not shown) | 7 | 24,407 | ||
| Young growth (Figure 15-4) | 8 | 22,323 | ||
| Equipment-Bridge (Figure 15-5) | 9 | 13,399 | ||
| Temporary capital account | 4 | 281,500 | ||
| Allocation of tree farm purchase to permanent capital accounts | ||||
| 12/31/93 | Depreciation expense | 10 | 521 | |
| Accumulated depreciation | 521 | |||
| First year depreciation of bridge | ||||
| 12/31/93 | Interest expense | 11 | 9,285 | |
| Mortgage payable | 2,425 | |||
| Cash | 11,710 | |||
| Interest expense and mortgage | ||||
| Principal reduction for 1993 (see Interest Expense and Mortgage Payable Accounts, Table 15-1) | ||||
| 01/15/94 | Operating expense | 12 | 421 | |
| Cash | 421 | |||
| Forest Suppliers for purchase of axes, posted signs, flagging | ||||
| 06/01/94 | Bridge maintenance | 13 | 582 | |
| Truck maintenance | 217 | |||
| Road maintenance | 897 | |||
| Cash | 1,696 | |||
| Forestry expenses for servicing truck, grading, pulling ditches, and repairing bridge | ||||
| 12/31/94 | Property tax expense | 14 | 820 | |
| Cash | 820 | |||
| Treasurer, Local County | ||||
| 02/15/95 | Expenses of sale (Table 15-1) | 15 | 10,950 | |
| Cash | 10,950 | |||
| E.Z. Cruiser, consultant for sale preparation (also see Table 15-2) | ||||
| 04/10/95 | Cash | 16 | 21,900 | |
| Timber sale revenue | 21,900 | |||
| Deposit (10 percent) on timber sale from Sawyer Lumber Co. | ||||
| 05/07/95 | Cash | 17 | 197,100 | |
| Timber sale revenue | 197,900 | |||
| Balance of sale revenue from Sawyer Lumber Co. (also see Table 15-1) | ||||
| 12/31/95 | Cost of timber sold* | 18 | 97,100 | |
| Merchantable sawtimber subaccount (value) | 97,100 | |||
| Allowable as basis of sale | ||||
| Merchantable swtimber subaccount (also see chapter 6) | ||||
| 06/15/96 | Reforestation account (not shown) | 19 | 12,500 | |
| Cash | 12,500 | |||
| B. Dozer, contractor for site preparation on 60 acres of cutover land | ||||
| 08/26/96 | Bridge maintenance | 20 | 352 | |
| Road maintenance | 578 | |||
| Cash | 930 | |||
| M. Truck, contractor for road grading, bridge repair | ||||
| 09/01/96 | Cash | 21 | 5,000 | |
| Reforestation account (not shown) | 5,000 | |||
| Receipt of FIP cost-share payments for site preparation (also see Table 15-2) | ||||
| 12/31/96 | Amortization of reforestation | 22 | 509 | |
| Reforestation account (not shown) | 509 | |||
| Amortization of site preparation (see Table 15-4) | ||||
| 02/10/97 | Reforestation account (not shown) | 23 | 3,600 | |
| Cash | 3,600 | |||
| E.Z. Cruiser, contractor for planting pine on site prepared 60-acre cutover (Table 15-4) | ||||
| 12/31/97 | Amortization of reforestation | 24 | 1,262 | |
| Reforestation account (not shown) | 1,262 | |||
| Second year of site preparation amortization ($1,018) and first year of planting amortization ($244)(see table 15-4) | ||||
| 08/06/98 | Timber stand improvement | 25 | 1,800 | |
| Cash | 1,800 | |||
| Tom Cleary, contractor for timber stand improvement in 60-acre natural pine stand | ||||
| 09/01/98 | Temporary capital account | 26 | 384,900 | |
| Cash | 384,900 | |||
| Mountain Realty Co., acquire Lonesome Pine - 120 acres total | ||||
| 09/02/98 | Temporary capital account | 27 | 6,400 | |
| Cash | 6,400 | |||
| Mountain Realty Co., appraisal, title search, and legal fees to acquire Lonesome Pine tract | ||||
| 09/15/98 | Total cost of property (6,400 + 384,300) | 28 | 391,300 | |
| Land | 29 | 60,998 | ||
| Merchantable sawtimber (Figures 15-3 and 15-5) | 30a | 314,036 | ||
| Young growth | 31 | 16,256 | ||
| Allocation of Lonesome Pine purchases to permanent capital accounts | ||||
| 09/31/98 | Pulpwood timber subaccount (not shown) | 32 | 22,323 | |
| Young growth | 22,323 | |||
| Young growth transferred to pulpwood timber subaccount (value not shown) | ||||
| 11/01/98 | Travel expense | 33 | 276 | |
| Cash | 276 | |||
| Routine inspection of boundaries, roads, and fire lines from travel diary (not shown) | ||||
| 12/31/98 | Property tax expense | 34 | 1,280 | |
| Cash | 1,280 | |||
| To Local County Treasurer for property tax expenses | ||||
| 12/31/98 | Interest expense | 35 | 13,992 | |
| Mortgage payable | 6,092 | |||
| Cash | 20,084 | |||
| Interest expense and mortgage principal reduction for 1993 | ||||
| 12/31/98 | Temporary capital account | 36 | 15,548 | |
| Travel expense | 276 | |||
| Property tax expense | 1,280 | |||
| Interest expense | 13,992 | |||
| Election to capitalize carrying charges for 1993 | ||||
| 12/31/98 | Temporary capital account | 37 | 15,584 | |
| Merchantable sawtimber subaccount | 14,041 | |||
| Pulpwood subaccount (not shown) | 905 | |||
| Young growth subaccount | 602 | |||
| Allocation of carrying charges to timber accounts | ||||
| 12/31/98 | Cash | 38 | 1,200 | |
| Hunting lease | 1,200 | |||
| Receipt of hunting lease payment from Laid Back Hunt Club |