At the beginning of the sale of Ladore lots, the concern offered to give a townsite lot to each purchaser of an acre lot. This arrangement is not uncommon and calls for special entries on the books. The most convenient method is to add the cost of the free lots to the cost of the purchased lots and deduct the sum from the price paid by the purchaser.

It is important that the record of lots selected to be so given away should be clearly marked on the plats; and, although the deed is not given until all the purchase money is paid, the records should be very clear in showing that these lots are reserved and therefore cannot be included as an asset. The form of journal entry would be as follows:

Ladore Contracts............................ $......

To Ladore Purchase .................. $......

In addition to the 181 townsite lots above mentioned, over 227 lots were purchased which had already been platted, giving a total of 408 lots at a cost of $11,114, which, in calculating profits, is figured at $30 a lot.