4-8. Create ledger accounts for the items in the following adjusting journal entries and post the entries to the ledger accounts 1 2 a. Feed Inventory Purchased for Use $ 570.00 3 Change in Purchased Feed Inventories $ 570.00 4 b. Crop Inventory Raised for Sale $ 10,000.00 5 Change in Crop Inventory $ 10,000.00 6 C. Feeder Livestock Inventory Purchased for Resale $ 9,050.00 7 Change in Purchased Feeder Livestock Inventory $ 9,050.00 8 d. Prepaid Expenses $ 1,000.00 9 Change in Prepaid Insurance $ 1,000.00 10 e. Depreciation Expense $ 31,000.00 11 Accumulated Depreciation $ 31,000.00 12 f. Change in Accounts Payable $ 600.00 13 Accounts Payable $ 600.00 14 g. Breeding Livestock $ 2,100.00 Gains/Losses Due to Changes in General Base Values of 15 Breeding Livestock $ 2,100.00 16 h. Change in Taxes Payable $ 3,600.00 17 Non-Current Deferred Taxes $ 2,100.00 18 Many farm operations use the cash-basis system and record revenue only when cash is received and record expenses only when cash is paid. The accrual-adjusted approach provides a more accurate picture of the financial performance and financial position of a farm business. The adjustments presented in this chapter provide the means to convert a cash-basis system to an accrual-adjusted system. These procedures allow the farm accountant to provide accrual-adjusted financial statements for lenders and other parties who need to make meaningful comparisons with the past performance of the farm business or with other farm operations. The procedures for the adjustments discussed in this chapter include those involving inventories, prepaid expenses, 2 depreciation expense, accrued expenses, accrued 3