AGBS 31 Homework #3 Unit 3 (102 points) Tentative Due Date: Wednesday, October 18, 2023, at the beginning of class. Purpose of Assignment: The recording of journal entries is essential for the accurate representation of an organizations financial activities for the year. Journal entries and posting keep track of the information necessary for a firms financial analysis. Namely, determining financial performance and financial position. Part 1-Journal Entries) Complete the journal entries for the transactions below. The proper procedure is to first complete a transaction analysis (similar to Unit 2s homework). This will identify the accounts involved, whether the accounts balance increased or decreased, and if the account is debited or credited in the transaction. After completing the transactions analysis, the journal entry can be recorded in the journal (a blank journal is provided). It is REQUIRED to use the account names from the Chart of Accounts for AGBS 31. This chart has been provided in class and additional copies can be found on Canvas. Lastly, keep in mind the two basic rules of journal entries: 1) Every transaction will have at least one (1) debited account and one (1) credited account 2) The value of the debits and credits in each transaction must equal. Transactions: 1. On January 2, Farmer Loretta sells $18,000 worth of almonds. (6 pts) 2. On February 4, Farmer Loretta buys $4,500 worth of fertilizer from the Fresno Ag Supply Store. (6 pts) 3. On March 6, Farmer Lorettas bank loans her $850,000 for a real estate loan to buy 200 acres of new land in the near future. The loan is for 10 years and has an annual interest rate of 8%. (6 pts) 4. On April 8, Farmer Lorettas spouse deposits $500 from a part-time job into the farms cash account. (6 pts) 5. On May 10, Farmer Loretta buys a new computer and some office furniture for the farm business for $5,200. (6 pts) 6. On June 13, Farmer Loretta pays her employee Harry Styles his monthly salary of $4,000 (i.e., his gross wages). From Mr. Styles gross wages, Farmer Loretta will withhold 25% for Mr. Styles income taxes and an additional 10% is withheld for Mr. Styles social security, Medicare, and unemployment taxes. (8 pts) 7. On July 15, Farmer Loretta pays her payroll taxes. Her payroll taxes are calculated as 20% of her employees gross wages (e.g., Mr. Styles gross wages in problem 6). (6 pts) 8. On August 17, Farmer Loretta sells an old hay wagon for $1,200. The wagon was originally purchased for $3,000 and has accumulated depreciation of $2,000. (10 pts) 9. On September 19, Farmer Loretta makes a loan payment on a 1-year operating loan. The loan payment includes a $2,000 interest expense and a $20,000 principal payment. (8 pts) 10. On October 21, Farmer Loretta pays a personal credit card debt of $300 using cash from from the farms checking account. (6 pts)

11. On November 30, Farmer Loretta buys a new pickup truck for the farm business. The new truck is valued at $50,000. As part of the purchase agreement Farmer Loretta receives a trade-in value of $6,000 for her old pickup truck (which was purchased 5 years ago at a cost of $40,000 and has accumulated depreciation of $35,000). She pays $3,000 in cash as a down payment and finances the rest of the balance with a 3- year loan that has a 7% annual interest rate. Show the journal entry for the date of purchase. (14 pts) Part 2-Posting) The posting of journal entry information to the relevant account ledger pages is another essential part of financial accounting. The ledger is where each individuals accounts activities are summarized for the year. It is the ledger balances at the end of the year that are used to determine financial performance and financial position. When posting, remember: What happens in the journal entry is what happens in the ledger. For example, if you debited the cash account in a journal entry, then the cash accounts ledger page will also be debited. Set up and complete a Cash ledger account page based upon the transactions in Part 1 (A template is provided below). Assume a beginning balance of $100,000. (20 pts) Though they are not required to be used, a blank journal and cash ledger are provided below ( can you help with part two and one if u have time aswell) thanks