The Forest Landowners Guide to the Federal Income Tax

Table 15-1 Evergreen Tree Farm Account Example

Ref. Debits Credits Ref. Debits Credits
$ $ $ $
1. Cash Account 6. Interest Expenses
1 2,500 11 9,285
2 75,000 33 13,992
3 4,000 34 13,992
11 11,710 7. Travel Expenses
12 421 31 276
13 1,696 34 276
14 820 8. Operating Expenses
15 10,950 12 421
16 21,900 9. Truck Maintenance
17 197,100 13 217
19 12,500 10. Bridge Maintenance
20 930 13 582
21 5,000 20 352
22 3,600 11. Road Maintenance
23 1,800 13 897
24 384,900 20 578
25 6,400 12. Property Tax Expense
31 276 14 820
32 1,280 32 1,280
33 20,084 34 1,280
36 1,200 13. Timber Stand Improvement
2. Temporary Capital Account 23 1,800
1 2,500 14. Timber Sale Revenue
2 275,000 16 21,900
3 4,000 17 197,100
4 281,500 Bal. Fwd. 219,000
24 384,900 15. Cost of Timber Sold (Basis)
25 6,400 18 97,100
26 391,300 16. Expenses of Sale
34 15,584 15 10,950
37 15,584 18. Hunting Lease
3. Mortgage Payable 36 1,200
2 200,000
11 2,425
Bal Fwd 197,575
*******
Bal Fwd 177,531
33 6,092 *
4. Depreciation Expense
10 521
5. Accumulated Depreciation
10 521