ACCOUNT NO CATEGORIES DESCRIPTION PY ADJ GL BALANCE ADDITIONS DEDUCTIONS CY UNADJ BALANCE TRIAL BALANCE UNADJUSTED TRIAL BALANCE 1100 Current Asset Cash - Iowa Credit Union 706,767 16,420,385 (15,774,848) 1,352,304 1,352,304 1200 Current Asset Margin Equity 39,723 115,220 (60,745) 94,198 94,198 1310 Current Asset AR - Trade 9,490 1,500,426 (1,900,956) (391,040) (391,040) 1320 Current Asset AR - Storage-Unbilled 54,992 11,304,975 (11,334,578) 25,389 25,389 1330 Current Asset Reserve for Bad Debt - - - - - 1410 Current Asset INVENTORY - Grain 2,589,855 2,879,500 (3,582,534) 1,886,821 1,886,821 1420 Current Asset INVENTORY - Merchandise 45 - - 45 45 1490 Current Asset Unrealized Gains on Open Forward Contracts 35,912 138,179 (35,912) 138,179 138,179 1500 Current Asset Prepaid Expenses 13,575 13,575 (13,575) 13,575 13,575 1600 Current Asset Advanced Payments on Income Taxes - 71,000 - 71,000 71,000 1710 FIXED ASSETS Land & Land Improvements 226,090 74,176 - 300,266 300,266 1720 FIXED ASSETS Building and Storage Facilities 7,501,146 38,577 - 7,539,723 7,539,723 1730 FIXED ASSETS Machinery and Equipment 610,066 - - 610,066 610,066 1780 EXPENSES Accumulated Depreciation (4,288,347) (324,835) - (4,613,182) (4,613,182) 2110 Current Liabilities AP - Trade (12,310) (678,445) 685,750 (5,005) (5,005) 2120 Current Liabilities AP - Grain (232,781) - 229,639 (3,142) (3,142) 2130 Current Liabilities AP - Grain Received, No Price Established (554,662) - 420,467 (134,195) (134,195) 2200 Current Liabilities Dividends payable (3,751) (3,720) 3,720 (3,751) (3,751) 2300 Current Liabilities Accrued Expenses (101,979) (678,078) 686,351 (93,706) (93,706) 2400 Current Liabilities Current Portion of Long-Term Debt (182,109) (6,854) - (188,963) (188,963) 2500 Current Liabilities Income Taxes Payable (29,101) (28,959) 29,101 (28,959) (28,959) 2600 Current Liabilities Unrealized Losses on Open Forward Contracts (201,098) (293,347) - (494,445) (494,445) 2700 Current Liabilities Notes Payable Less Current portion and Net of Loan Costs (1,631,070) - 187,250 (1,443,820) (1,443,820) 2800 Current Liabilities Deferred Income Taxes (1,232,224) (13,349) 384,766 (860,807) (860,807) 2900 Current Liabilities Line of Credit - (10,625,841) 10,625,841 - - 3100 Shareholders Equity Common stock, $50 par value, 3,720 shares authorized, issued and outstanding (186,000) - - (186,000) (186,000) 3200 Shareholders Equity Retained Earnings (3,049,707) (78,802) - (3,128,509) (3,128,509) 4100 INCOME Grain Sales (15,803,947) (18,112,077) 15,803,947 (18,112,077) (18,112,077) 5100 EXPENSES Cost of Grain Sales 15,212,810 17,509,482 (15,212,810) 17,509,482 17,509,482 4200 INCOME Service Revenue (763,104) (818,897) 763,104 (818,897) (818,897.00) 5500 EXPENSES Management and Labor - - - 5505 EXPENSES Salaries 333,705 369,082 (333,705) 369,082 369,082 5510 EXPENSES Bonuses 30,000 30,000 (30,000) 30,000 30,000 5520 EXPENSES Patroll tax 28,187 29,527 (28,187) 29,527 29,527 5530 EXPENSES Pension Expense 6,136 6,510 (6,136) 6,510 6,510 5540 EXPENSES Management Travel 3,521 3,300 (3,521) 3,300 3,300 5600 Facility - - - 5605 EXPENSES Facilities - Utilities 156,790 157,005 (156,790) 157,005 157,005 5610 EXPENSES Facilities - Supplies 40,019 38,200 (40,019) 38,200 38,200 5620 EXPENSES Facilities - Maintenance 268,368 269,120 (268,368) 269,120 269,120 5630 EXPENSES Facilities - Other 182,342 222,799 (182,342) 222,799 222,799 5700 EXPENSES Administrative - - - 5705 EXPENSES Office Supplies 558 2,735 (558) 2,735 2,735 5706 EXPENSES Advertising 5,019 5,134 (5,019) 5,134 5,134 5710 EXPENSES Office Utilities 50,704 41,880 (50,704) 41,880 41,880 5720 EXPENSES Insurance 13,575 13,575 (13,575) 13,575 13,575 8000 EXPENSES Term Interest Expense 72,403 65,346 (72,403) 65,346 65,346 8100 EXPENSES Seasonal Interest Expense 7,854 57,744 (7,854) 57,744 57,744 8200 EXPENSES Penalties 678 211 (678) 211 211 7000 REVENUE Other Income (7,045) (4,256) 7,045 (4,256) (4,256) 5800 EXPENSES Income Tax Expense 78,905 (342,462) (78,905) (342,462) (342,462) - 19,367,741 (19,367,741) - - - Cash in the bank: $1,693,112 Deposits in transit $334,250 Outstanding checks $(639,168) After the books were prepared for you, the company realized that $35,890 of deposit in transit was not recorded in cash account. AR/SALES The company issued bill of lading and and trucks left for delivery with $457,193 of grains and cost of $441,982. The transaction was not yet recorded as revenue. Margin Equity 8/31/18 Deposits (158,952) Open Trade equity (Exchange-Traded Futures Contracts) 253,150 ($215,950 corn and 37,200 soy) Open Trade equity is measured based on quated market prices. Inventory at 8/31/2018 Bushels on hand we 504,457 corn and 56,709 soy. Bushels in transit were 22,048 corn and 3,502 soy. Storage obligations had non-negotiable warehouse receipts of 12,163 corn and 22,458 soy; and open storage 79,150 corn and 26,551 soy. The elevator bid was valued at $1,357,700 for corn and $87,040 for soy. Fair value based on quated prices for similar items. The long positions in the grain market as of the 8/31/18 were: company owned corn - 435,192 bushels company owned soy - 11,202 bushels open purchase contract - cash: 657,393 corn bushels and 118,700 soy bushels The short positions in the grain market as of the 8/31/18 were: open sales contract-cash: 62,390 corn bushels, 46,852 soy bushels open sales contract-BOT: 1,025,000 corn bushels, 65,000 soy bushels Unrealized gains on open forwards contracts included gains from forward cash sales contracts of $59,238 corn and $78,941 soy. Fair value was based on a quated similar items. Unrealized losses on open forwards contracts included losses from forward cash purchase contracts of $(274,247) corn and $(220,198) soy. Fair value based on the quated prices of similar items. Prepaid expenses The company has an annual insurance policy of $13,575 starting on January 1st. The company pays full installment prior to the policy start date. Accounts payable As of 8/31/18, the company received 17,271 soy bushels delivery of grain to the elevator without fixed price at $134,195. Fair value based on the quated prices of similar items. Line of Credit LOC - $6,000,000 with $0 balance at 8/31/18 is due 12/31/18 and interest rate was 4.47% Long-term debt There were no changes to long-term debt. The loan is the same since 2016 at $2,050,000 at 3.7% with $20,517 monthly payments and final payment of $1,116,804 due in 2021. The balance on the loan on 8/31/18 is $1,635,348 and includes unamortized cost of $2,565 and current maturities of $188,963. Amortization of debt was $962. Income Tax Expense Federal income tax payable by $28,955. Deferred Income tax benefit for federal return is $383,486 and expense for state of $12,069. Income Tax Payable Federal income tax payable of $28,955, income tax refund on deposits of $71,000 and underpayment penalty of $4. Deferred Income Taxes DTL from depreciation of $919,091 and DTA from NOL $58,284. The remaining NOL for State taxes is $613,519. Capital Stock No new stock was issued. There remains to be 3,720 issues authorized, issued and outstanding and the company continued to pay $1 dividend per share annually. Related Party Transactions Director 1 $330,000 Director 2 $250,703 Director 3 $345,280 Officer 1 $995,660 Officer 2 $627,959 Pension Plan No changes - SIMLPE IRA with contributions up to 3%. 2018 pension expense was $6,510.