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 35 13,992
3 4,000 36 13,992
11 11,710 7. Travel Expenses
12 421 33 276
13 1,696 36 276
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
23 3,600 11. Road Maintenance
25 1,800 13 897
26 384,900 20 578
27 6,400 12. Property Tax Expense
33 276 14 820
34 1,280 34 1,280
35 20,084 36 1,280
38 1,200 13. Timber Stand Improvement
2. Temporary Capital Account 25 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
26 384,900 15. Cost of Timber Sold (Basis)
27 6,400 18 97,100
28 391,300 16. Expenses of Sale
36 15,584 15 10,950
37 15,584 17. Amortization of Reforestation
3. Mortgage Payable 22 509
2 200,000 24 1,262
11 2,425 18. Hunting Lease
Bal Fwd 197,575 38 1,200
*******
Bal Fwd 177,531
35 6,092 *
4. Depreciation Expense
10 521
5. Accumulated Depreciation
10 521