Question
Balance Sheet, Jan 1, 2019 Current Assets Cost Current Liabilities Cost Cash 13,000 Accounts Payable 35,000 Corn Grain Inventory 20,000 Interest Payable 11,850 Wheat Inventory
Balance Sheet, Jan 1, 2019 | ||||
Current Assets | Cost |
| Current Liabilities | Cost |
Cash | 13,000 |
| Accounts Payable | 35,000 |
Corn Grain Inventory | 20,000 |
| Interest Payable | 11,850 |
Wheat Inventory | 10,000 |
| Principal Farm Mortgage | 20,000 |
Prepaid expenses | 5,500 |
| Principal Beef Loan | 10,000 |
Feed on hand | 80,000 |
| Operating Loan | 75,000 |
Market Livestock | 32,000 |
| Property Taxes Payable | 15,000 |
Accounts Receivable | 2,000 |
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Supplies | 4,000 |
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Total current assets | 166,500 |
| Total current liabilities | 166,850 |
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Intermediate Assets |
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| Intermediate Liabilities |
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Machinery | 300,000 |
| Beef Loan | 100,000 |
Beef Breeding Stock | 55,000 |
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Titled Vehicles | 26,000 |
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Total Intermediate Assets | 381,000 |
| Total Intermediate Liabilities | 100,000 |
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Long-Term Assets |
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| Long-term Liabilities |
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Land | 318,000 |
| Farm Mortgage | 170,000 |
Buildings | 67,000 |
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Total Long-term Assets | 385,000 |
| Total Long-term Liabilities | 170,000 |
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| Total liabilities | 436,850 |
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| Owner equity | 495,650 |
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Total Assets | 932,500 |
| Total liabilites & owner equity | 932,500 |
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Create the Beginning Balance Sheet (Jan 1, 2019) in a new spreadsheet.
Question 1
On a new sheet in your spreadsheet file, calculate the annual depreciation for each depreciable asset on your opening balance sheet. The beef breeding livestock on the Jan 1, 2019 balance sheet are purchased. Use a depreciation rate of 10% for the breeding livestock, 10% for machinery and equipment, and 5% for any other depreciable assets. Calculate how much the book value of each depreciable asset would be on December 31, 2019.
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