calculate 4 eoy adjustments and depreciation expense entries for journal and adjusted trial balance for 2020.

attached is the journal 2020, balance sheet 2019, adjusted trial balance so far and other information.

i need these 4 change in eoy inventories. using journal entries. and to calculate depreciation expense.

i need eoy adjustments with journal entries for given transactions, change in prepaid insurance, change in raised crop inventories, change in market livestock inv, change in purchased feed inventories, change in taxes payable. i also need to know depreciation expense entries for the given transactions.

Page 1 Debat 22000 Date Account Accounts 1000 led 3130 Other Capital Contribution/Gifts inheritances 1920 diesel 1000 cash 31/20 Olomouc L 2.000.00 2000 200.00 100 300.00 700.00 700.00 6611 6720 Cattle Ristration Fees Blectricity 5.500 550000 1R 500.00 Purchased feed Cash 1860000 43.700.00 4170000 12.000.00 5020 1000 1000 4201 6100 2100 1000 6110 1000 3110 1000 1000 Livestock Product Sales, Mik Wages Expense Tanes Parable Cash Payroll Tax Expense 2.400.00 3.600.00 2400.00 2.400.00 2.300,00 2800.00 14,900.00 Owner Withdrawals Cash Cash Cash Sales of Market Livestock Fort NS Herbicides Pesticides 1490000 6510 10,000.00 16,700.00 27 600.00 6.000,00 6.000.00 22.300.00 1030000 400.00 10000 6520 1000 1000 1500 1980 1000 200 1600 9100 1000 1000 8400 1000 4300 1000 2300 12.500.00 | Breeding Livestock Accumulated Depreciation Cash Ganslosed on Sales of Fa t al Asets Madinary and Equipment Income Tax Expense cash cash Miscellaneous Revue h Proceeds from Government Programs cash Notes on Current 17 500.00 5500.00 32.700.00 27000 36.000 2.00000 uts 1.000 1580 Accedere 8200 Gino Sales of Farm C 1000h 1600 Machinery and 3.000.00 Journal for Crooked Tree Farms 2020 Page 2 a c counts Godt Accounts 1000 700.00 400 pe 200.00 6/19 6720 Electricity 900.00 100.00 32000 2000 22 6216311 . Hrepense 1000Cash 235 5 531 Ming Supplies 1000 cash 243213110 Omer Withdrawal 2000 1000 50 7/14 18. 00 DO 2310Notes Payable Due within One Year 8100 rest Expense 1000 Cash 2000 20.000.00 25 7/22 1.300 DO 1000 cash 100.00 2400000 20.000.00 68.200 Dp 6200.00 56.000.00 240.00 56.340.00 7.500.00 4,000.00 4.000.00 10.000.00 2800.00 11 200.00 2.100.00 1000 Cash ? | B7 | 100 | 4201 Livestock Product Sales Mik 298/15 2310 Notes Payable Due within One Year 100 interest Expense 1000 cash 8/27 6601 G ad Diesel 1000 Cash 3 93 1650 office Furniture and Equipment 100 cash 2016 6100 Wages Expense 2100 Tawes Payable 1000 Cash 339/20 6110 Payroll Tax Expense 1000 Cash 10/6 676 Certification Fees 1000 cash 108 1000 Cash 1000 Cash Oop Sales > 10/2250.20 Purchased Feed 1000 cash 37 10/31 681 tom Hire Eupeng 1000 cash 1 14 100 Real Estate Notesben-Current 11,121000 g and improvements 1000 cash 40 11/29 2300 Notes Non-Garret 210000 2.000.00 2800.00 52.70000 52.700.00 14.300.00 1400.00 21.300.00 21.300.00 250.000 250.000 25.000 400000 1.260.00 516000 12.000.00 1000 Cash 44 122 1000 chi 3120 Nonm name 4212286110Parell Tax Expense 1000 12.000.00 70000 700.00 Student: Barcellos, C Crooked Tree Farms BALANCE SHEET For December 31, 2019 Assets: Current Assets: Cash Accounts Receivable Feeder Livestock Inventory Raised for Sale Feed Inventory Purchased for Use Crop Inventory Raised for Sale Prepaid Insurance TOTAL CURRENT ASSETS 44,000.00 12,000.00 24,000.00 14,000.00 15,000.00 8,200.00 117,200.00 Liabilities: Current Liabilities: Accounts Payable Taxes Payable Interest Payable Notes Payable Due Within One Year TOTAL CURRENT LIABILITIES 27,000.00 14,000.00 4,200.00 74,000.00 119,200.00 Starting LEDGER BALANCE $56,000 luu Non-Current Liabilities: Notes Payable, Non-Current TOTAL NON-CURRENT LIABILITIES $ 16,000.00 16,000.00 $34,000 $ Non-Current Assets: Breeding Livestock Machinery & Equipment Office Furniture and Equipment Permanent Crops Land, Buildings, and improvements Investment in Cooperatives Accumulated Depreciation TOTAL NON-CURRENT ASSETS si TOTAL LIABILITIES 80,000.00 480,000.00 5,200.00 320,000.00 2,400,000.00 48,000.00 (148,000.00) 3,185,200.00 $ 135,200.00 Equity: $ $ in Retained Capital $ 3,167,200.00 $ TOTAL EQUITY $ 3,167,200.00 TOTAL ASSETS $ 3,302,400.00 TOTAL LIABILITIES AND EQUITY $ 3,302,400.00 A Check your start-up notes for an explanation Check your start-up notes for an explanation Credits Code 1000 1100 1211 Debits 49,160.00 12,000.00 24,000.00 14,000.00 15,000.00 8,200.00 74,000.00 448,500.00 9,200.00 320,000.00 2,655,000.00 48,000.00 90,700.00 27,000.00 19,200.00 4,200.00 106,000.00 58,000.00 250,000.00 3,167,200.00 6,300.00 12,000.00 2,000.00 127,600.00 Crooked Tree Farms TRIAL BALANCE As of 12/31/2020 Accounts Cash Accounts Receivable Feeder Livestock Inventory Raised for Sale Feed Inventory Purchased for Use Crop Inventory Raised for Sale Prepaid Insurance Breeding Livestock Machinery and Equipment Office Furniture and Equipment Permanent Crops Land, Buildings, and improvements Investment in Cooperatives Accumulated Depreciation Accounts Payable Taxes Payable Interest Payable Notes Payable--Non-Current Notes Payable Due within One Year Real Estate Notes Payable--Non-Current Retained Capital Owner Withdrawals Non-Farm Income Other Capital Contributions/Gifts/Inheritances Cash Crop Sales Change in Raised Crop Inventories Cash Sales of Market Livestock Change in Market Livestock Inventories Livestock Product Sales, Milk Proceeds from Government Programs Purchased Feed Change in Purchased Feed Inventories Wages Expense Payroll Tax Expense Custom Hire Expense Gas and Diesel Fertlizers Herbicides, Pesticides Cattle Registration Fees Milking Supplies Insurance Electricity Office Supplies Certification Fees Depreciation Expense Change in Prepaid Insurance Interest Expense Gains (Losses) on Sales of Farm Capital Assets Gains (losse Miscellaneous Revenue Income Tax Expense Change in Taxes Payable 1224 1231 1301 1500 1600 1650 1701 1800 1901 1980 2000 2100 2200 2300 2310 2400 3100 3110 3120 3130 4000 4011 4101 4111 4201 4300 5020 5030 6100 6110 6311 6401 6510 6520 6611 6631 6700 6720 6750 6761 6780 6820 8100 8200 8400 9100 9110 14,900.00 111.900.00 32,700.00 32,800.00 26,000.00 5,200.00 54,500.00 15,800.00 10,900.00 16,700.00 700.00 2,300.00 24,000.00 14,600.00 1,600.00 2,800.00 5,760.00 4,140.00 1,400.00 5,500.00 17,500.00 Sarah, Matt, and Jerry do most of the labor needed on the farm but at times of high need (e.g., harvest time for their tree crops) they may hire additional workers or contract out the work to custom hire organizations. Sarah and Matt do own a variety of field machinery and other equipment, the original cost of which is reported on Crooked Tree Farms' BOY Balance Sheet (see Machinery and Equipment under Non-Current Assets). Assume all of the equipment, excep a hay baler and a livestock trailer were acquired on 12/31/2015. The baler was purchased two years ago (July 15, 2018) and the trailer was purchased one year ago (March 15, 2019). Some a the equipment is nearing the end of its useful life, but they only plan on replacing their general purpose tractor in the upcoming year. The dairy enterprise has 100 breeding age animals with a total original cost of $80,000. Additional assets in include office furniture and equipment and some stock certificate representing the cooperative investment. The original cost of these items is reported on the BOY Balance Sheet. The accumulated depreciation represents the total depreciated amounts for their real estate improvements, field equipment and machinery, office furniture and equipment, the establishment costs of the crop acreage, and breeding livestock. The Farm Financial Standards Council (FFSC) recommends reporting accumulated depreciation as a summary account for all assets rather than reporting individual depreciation amounts. The FFSC guidelines are used for this project. Crooked Tree Farms currently has two loans: 1) A 9-month operating loan for $56,000 at 2% originated on November 15, 2019 and is due on August 15, 2020. This is a current liability (e.g., Notes Payable Due within One Year). 2) A 3-year equipment loan (for the baler) of $51,000 (at a 6% annual interest rate) that originated on July 14, 2018. They have already made one payment and current outstanding balance is $34,000. The next payment is due on July 14, 2019 and will require a principal payment of $18,000 plus accrued interest. They owe $18,000 on the loan in the next 12 months (the current portion of a non-current liability) and $16,000 beyond the next 12 months (a non- current liability). The land and improvements were appraised in 2008 at a value of $2,400,000. Of this total $1,800,000 is for the land and 5600,000 is for the various buildings and improvements, including the family home. The value of the trees on the pistachio and cherry acreage is $320.000. As she has no immediate plans for selling the farm, she maintains this valuation on her books, even though the market value of her operation has changed since 2008. Real estate comprises the majority of Sarah's owner equity! Balance Sheet notes regarding the liabilities: NOTE: Please read the following very carefully as it explains the values on the BOY Balance Sheet and the starting balances in your ledger. THIS IS VERY IMPORTANT!! A - The BOY Balance Sheet total for Notes Pavable Due within One Year is $74,000. This includes the amount associated with the existing operating loan ($56,000) plus 2020's payment on the baler loan ($18,000). NOTE: The starting BOY LEDGER balance for Notes Payable Due within One Year is $56,000. B - Long term notes payable are a non-current liability as the loans cover multiple years. The current portion of these loans are equal to $18,000 and are included under the Notes Payable Due within One Year on the Balance Sheet (see footnote A above). The amount owed after the next twelve months is $16,000 and recorded under non-current liabilities on the Balance Sheet under Notes Payable, Non-Current. NOTE: The starting BOY LEDGER balance for Notes Payable, Non-Current is $34,000. Feeder Livestock Inventory Ralsed for Sale Feed Inventory Purchased for Use Crop Inventory Raised for Sale Prepaid Insurance 24,000.00 14,000.00 15,000.00 8,200.00 Transaction #18: Date: 5-29 Sarah receives a $36,000 loan for a new truck. The loan is for 5 years and has a 7% annual interest rate. 18 17 Transaction #19: Date: 6-2 Sarah and Matt buy a new truck (worth $42,000). In the deal, they trade-in their old truck. The truck dealership gives them $4,000 of trade-in value for their old truck and they pay the rest ($38,000) in cash. The old truck was purchased at a cost of $35,000 and has $30,000 of accumulated depreciation. The new truck has an expected salvage value of $4,200 and an expected life of 7 years. Transaction #27: Date: 8-1 Matt renews the farm's annual insurance policy. The new policy costs $24,000. 27 January 17, 2019 Transaction #38: Date: 11-14 Matt and Sarah take out a $250,000 farmland loan. The loan is for 15 years and has an annual interest rate of 3.5%. The first payment is due on February 14, 2021. Journal for Crooked Tree Farms, 2020 Page 1 # Date 1 Credit 1/6 Debit 2,000.00 2 1/17 2,000.00 8,200.00 3 1/28 8,200.00 300.00 4 2/8 300.00 700.00 5 2/13 700.00 5,500.00 6 2/25 5,500.00 18,600.00 7 3/2 18,600.00 43,700.00 8 3/10 43,700.00 12,000.00 2.400.00 9,600.00 9 3/13 2,400.00 10 3/17 2,400.00 2,800.00 11 3/27 2,800.00 14,900.00 Accounts # Accounts 1000 Cash 3130 Other Capital Contributions/Gifts/linheritances 6400 Gas and Diesel 1000 Cash 6750 Office Supplies 1000 Cash 1000 Cash 6611 Cattle Registration Fees 6720 Electricity 1000 Cash 5020 Purchased Feed 1000 Cash 1000 Cash 4201 Livestock Product Sales, Milk 6100 Wages Expense 2100 Taxes Payable 1000 Cash 6110 Payroll Tax Expense 1000 Cash 3110 Owner Withdrawals 1000 Cash 1000 Cash 4101 Cash Sales of Market Livestock 6510 Fertilizers 6520 Herbicides, Pesticides 1000 Cash 1000 Cash 1500 Breeding Livestock 1980 Accumulated Depreciation 1000 Cash 8200 Gains (losses) on Sales of Farm Capital Assets 1600 Machinery and Equipment 9100 Income Tax Expense 1000 Cash 1000 Cash 8400 Miscellaneous Revenue 1000 Cash 4300 Proceeds from Governement Programs 1000 Cash 2300 Notes Payable Non-Current 1600 Machinery and Equipment 1980 Accumulated Depreciation 8200 Gains (losses) on Sales of Farm Capital Assets 1000 Cash 1600 Machinery and Equipment 12 3/31 14,900.00 10,900.00 16,700.00 13 4/5 27,600.00 6,000.00 14 6,000.00 4/12 27,300.00 10,800.00 400.00 15 4/15 38,500.00 17,500.00 16 5/9 17,500.00 5,500.00 17 5/21 5,500.00 32,700.00 18 5/29 32,700.00 36,000.00 19 5/2 36,000.00 42,000.00 30,000.00 1,000.00 38,000.00 35,000.00 Tree Farms, 2020 Page 2 # Date 6/14 Debit Credit 20 74,900.00 21 74,900.00 6/19 9,100.00 22 6/21 9,100.00 32,700.00 23 32,700.00 6/25 2,300.00 24 7/2 2,300.00 3,500.00 25 7/14 3,500.00 18,000.00 2,040.00 20,040.00 26 7/23 1,300.00 1,300.00 27 8/1 24,000.00 28 8/7 24,000.00 68,200.00 68,200.00 29 8/15 56,000.00 840.00 30 56,840.00 8/27 7,600.00 31 9/3 7,600.00 Accounts # Accounts 1000 Cash 4000 Cash Crop Sales 6720 Electricity 1000 Cash 6311 Custom Hire Expense 1000 Cash 6631 Milking Supplies 1000 Cash 3110 Owner Withdrawals 1000 Cash 2310 Notes Payable Due within One Year 8100 Interest Expense 1000 Cash 6750 Office Supplies 1000 Cash 6700 Insurance 1000 Cash 1000 Cash 4201 Livestock Product Sales, Milk 2310 Notes Payable Due within One Year 8100 Interest Expense 1000 Cash 6401 Gas and Diesel 1000 Cash 1650 Office Furniture and Equipment 1000 Cash 6100 Wages Expence 2100 Taxes Payable 1000 Cash 6110 Payroll Tax Expense 1000 Cash 6761 Certification Fees 1000 Cash 1000 Cash 4000 Cash Crop Sales 5020 Purchased Feed 1000 Cash 6311 Custom Hire Expense 1000 Cash 1000 Cash 2400 Real Estate Notes Payable Non-Current 1800 Land, Building and improvements 1000 Cash 2300 Notes Payable Non-Curret 8100 Interest Expense 1000 Cash 1000 Cash 3120 Non-Farm Income 6110 Payroll Tax Expense 1000 Cash 4,000.00 32 9/16 4,000.00 14,000.00 2.800.00 11,200.00 33 9/20 2,100.00 34 4 10/6 2,100.00 2,800.00 35 10/8 2,800.00 52,700.00 36 10/22 52,700.00 14,200.00 37 10/31 14,200.00 21,800.00 38 11/14 21,800.00 250,000.00 39 11/17 250,000.00 255,000.00 40 11/29 255,000.00 4,000.00 1,260.00 41 12/12 5,260.00 12,000.00 42 12/28 12,000.00 700.00 700.00 The land and improvements were appraised in 2008 at a value of $2,400,000. Of this total $1,800,000 is for the land and $600,000 is for the various buildings and improvements, including the family home. The value of the trees on the pistachio and cherry acreage is $320,000. As she has no immediate plans for selling the farm, she maintains this valuation on her books, even though the market value of her operation has changed since 2008. Real estate comprises the majority of Sarah's owner equity. Sarah, Matt, and Jerry do most of the labor needed on the farm but at times of high need (e.g., harvest time for their tree crops) they may hire additional workers or contract out the work to custom hire organizations. Sarah and Matt do own a variety of field machinery and other equipment, the original cost of which is reported on Crooked Tree Farms' BOY Balance Sheet (see Machinery and Equipment under Non-Current Assets). Assume all of the equipment, except a hay baler and a livestock trailer were acquired on 12/31/2015. The baler was purchased two years ago (July 15, 2018) and the trailer was purchased one year ago (March 15, 2019). Some of the equipment is nearing the end of its useful life, but they only plan on replacing their general purpose tractor in the upcoming year. The dairy enterprise has 100 breeding age animals with a total original cost of $80,000. Additional assets in include office furniture and equipment and some stock certificate representing the cooperative investment. The original cost of these items is reported on the BOY Balance Sheet. The accumulated depreciation represents the total depreciated amounts for their real estate improvements, field equipment and machinery, office furniture and equipment, the establishment costs of the crop acreage, and breeding livestock. The Farm Financial Standards Council (FFSC) recommends reporting accumulated depreciation as a summary account for all assets rather than reporting individual depreciation amounts. The FFSC guidelines are used for this project. Crooked Tree Farms currently has two loans: 1) A 9-month operating loan for $56,000 at 2% originated on November 15, 2019 and is due on August 15, 2020. This is a current liability (e.g., Notes Payable Due within One Year). 2) A 3-year equipment loan (for the baler) of $51,000 (at a 6% annual interest rate) that originated on July 14, 2018. They have already made one payment and current outstanding balance is $34,000. The next payment is due on July 14, 2019 and will require a principal payment of $18,000 plus accrued interest. They owe $18,000 on the loan in the next 12 months (the current portion of a non-current liability) and $16,000 beyond the next 12 months (a non- current liability). Balance Sheet notes regarding the liabilities: NOTE: Please read the following very carefully as it explains the values on the BOY Balance Sheet and the starting balances in your ledger. THIS IS VERY IMPORTANT!! A - The BOY Balance Sheet total for Notes Payable Due within One Year is $74,000. This includes the amount associated with the existing operating loan ($56,000) plus 2020's payment on the baler loan ($18,000). NOTE: The starting BOY LEDGER balance for Notes Payable Due within One Year is $56,000. B - Long term notes payable are a non-current liability as the loans cover multiple years. The current portion of these loans are equal to $18,000 and are included under the Notes Payable Due with One Year on the Balance Sheet (see footnote A above). The amount ow after the next twelve months is $16,000 and recorded under non-current liabilities on the Balance Sheet under Notes Payable, Non-Current. NOTE: The starting BOY LEDGER balance for Notes Payable, Non-Current is $34,000. Page 1 Debat 22000 Date Account Accounts 1000 led 3130 Other Capital Contribution/Gifts inheritances 1920 diesel 1000 cash 31/20 Olomouc L 2.000.00 2000 200.00 100 300.00 700.00 700.00 6611 6720 Cattle Ristration Fees Blectricity 5.500 550000 1R 500.00 Purchased feed Cash 1860000 43.700.00 4170000 12.000.00 5020 1000 1000 4201 6100 2100 1000 6110 1000 3110 1000 1000 Livestock Product Sales, Mik Wages Expense Tanes Parable Cash Payroll Tax Expense 2.400.00 3.600.00 2400.00 2.400.00 2.300,00 2800.00 14,900.00 Owner Withdrawals Cash Cash Cash Sales of Market Livestock Fort NS Herbicides Pesticides 1490000 6510 10,000.00 16,700.00 27 600.00 6.000,00 6.000.00 22.300.00 1030000 400.00 10000 6520 1000 1000 1500 1980 1000 200 1600 9100 1000 1000 8400 1000 4300 1000 2300 12.500.00 | Breeding Livestock Accumulated Depreciation Cash Ganslosed on Sales of Fa t al Asets Madinary and Equipment Income Tax Expense cash cash Miscellaneous Revue h Proceeds from Government Programs cash Notes on Current 17 500.00 5500.00 32.700.00 27000 36.000 2.00000 uts 1.000 1580 Accedere 8200 Gino Sales of Farm C 1000h 1600 Machinery and 3.000.00 Journal for Crooked Tree Farms 2020 Page 2 a c counts Godt Accounts 1000 700.00 400 pe 200.00 6/19 6720 Electricity 900.00 100.00 32000 2000 22 6216311 . Hrepense 1000Cash 235 5 531 Ming Supplies 1000 cash 243213110 Omer Withdrawal 2000 1000 50 7/14 18. 00 DO 2310Notes Payable Due within One Year 8100 rest Expense 1000 Cash 2000 20.000.00 25 7/22 1.300 DO 1000 cash 100.00 2400000 20.000.00 68.200 Dp 6200.00 56.000.00 240.00 56.340.00 7.500.00 4,000.00 4.000.00 10.000.00 2800.00 11 200.00 2.100.00 1000 Cash ? | B7 | 100 | 4201 Livestock Product Sales Mik 298/15 2310 Notes Payable Due within One Year 100 interest Expense 1000 cash 8/27 6601 G ad Diesel 1000 Cash 3 93 1650 office Furniture and Equipment 100 cash 2016 6100 Wages Expense 2100 Tawes Payable 1000 Cash 339/20 6110 Payroll Tax Expense 1000 Cash 10/6 676 Certification Fees 1000 cash 108 1000 Cash 1000 Cash Oop Sales > 10/2250.20 Purchased Feed 1000 cash 37 10/31 681 tom Hire Eupeng 1000 cash 1 14 100 Real Estate Notesben-Current 11,121000 g and improvements 1000 cash 40 11/29 2300 Notes Non-Garret 210000 2.000.00 2800.00 52.70000 52.700.00 14.300.00 1400.00 21.300.00 21.300.00 250.000 250.000 25.000 400000 1.260.00 516000 12.000.00 1000 Cash 44 122 1000 chi 3120 Nonm name 4212286110Parell Tax Expense 1000 12.000.00 70000 700.00 Student: Barcellos, C Crooked Tree Farms BALANCE SHEET For December 31, 2019 Assets: Current Assets: Cash Accounts Receivable Feeder Livestock Inventory Raised for Sale Feed Inventory Purchased for Use Crop Inventory Raised for Sale Prepaid Insurance TOTAL CURRENT ASSETS 44,000.00 12,000.00 24,000.00 14,000.00 15,000.00 8,200.00 117,200.00 Liabilities: Current Liabilities: Accounts Payable Taxes Payable Interest Payable Notes Payable Due Within One Year TOTAL CURRENT LIABILITIES 27,000.00 14,000.00 4,200.00 74,000.00 119,200.00 Starting LEDGER BALANCE $56,000 luu Non-Current Liabilities: Notes Payable, Non-Current TOTAL NON-CURRENT LIABILITIES $ 16,000.00 16,000.00 $34,000 $ Non-Current Assets: Breeding Livestock Machinery & Equipment Office Furniture and Equipment Permanent Crops Land, Buildings, and improvements Investment in Cooperatives Accumulated Depreciation TOTAL NON-CURRENT ASSETS si TOTAL LIABILITIES 80,000.00 480,000.00 5,200.00 320,000.00 2,400,000.00 48,000.00 (148,000.00) 3,185,200.00 $ 135,200.00 Equity: $ $ in Retained Capital $ 3,167,200.00 $ TOTAL EQUITY $ 3,167,200.00 TOTAL ASSETS $ 3,302,400.00 TOTAL LIABILITIES AND EQUITY $ 3,302,400.00 A Check your start-up notes for an explanation Check your start-up notes for an explanation Credits Code 1000 1100 1211 Debits 49,160.00 12,000.00 24,000.00 14,000.00 15,000.00 8,200.00 74,000.00 448,500.00 9,200.00 320,000.00 2,655,000.00 48,000.00 90,700.00 27,000.00 19,200.00 4,200.00 106,000.00 58,000.00 250,000.00 3,167,200.00 6,300.00 12,000.00 2,000.00 127,600.00 Crooked Tree Farms TRIAL BALANCE As of 12/31/2020 Accounts Cash Accounts Receivable Feeder Livestock Inventory Raised for Sale Feed Inventory Purchased for Use Crop Inventory Raised for Sale Prepaid Insurance Breeding Livestock Machinery and Equipment Office Furniture and Equipment Permanent Crops Land, Buildings, and improvements Investment in Cooperatives Accumulated Depreciation Accounts Payable Taxes Payable Interest Payable Notes Payable--Non-Current Notes Payable Due within One Year Real Estate Notes Payable--Non-Current Retained Capital Owner Withdrawals Non-Farm Income Other Capital Contributions/Gifts/Inheritances Cash Crop Sales Change in Raised Crop Inventories Cash Sales of Market Livestock Change in Market Livestock Inventories Livestock Product Sales, Milk Proceeds from Government Programs Purchased Feed Change in Purchased Feed Inventories Wages Expense Payroll Tax Expense Custom Hire Expense Gas and Diesel Fertlizers Herbicides, Pesticides Cattle Registration Fees Milking Supplies Insurance Electricity Office Supplies Certification Fees Depreciation Expense Change in Prepaid Insurance Interest Expense Gains (Losses) on Sales of Farm Capital Assets Gains (losse Miscellaneous Revenue Income Tax Expense Change in Taxes Payable 1224 1231 1301 1500 1600 1650 1701 1800 1901 1980 2000 2100 2200 2300 2310 2400 3100 3110 3120 3130 4000 4011 4101 4111 4201 4300 5020 5030 6100 6110 6311 6401 6510 6520 6611 6631 6700 6720 6750 6761 6780 6820 8100 8200 8400 9100 9110 14,900.00 111.900.00 32,700.00 32,800.00 26,000.00 5,200.00 54,500.00 15,800.00 10,900.00 16,700.00 700.00 2,300.00 24,000.00 14,600.00 1,600.00 2,800.00 5,760.00 4,140.00 1,400.00 5,500.00 17,500.00 Sarah, Matt, and Jerry do most of the labor needed on the farm but at times of high need (e.g., harvest time for their tree crops) they may hire additional workers or contract out the work to custom hire organizations. Sarah and Matt do own a variety of field machinery and other equipment, the original cost of which is reported on Crooked Tree Farms' BOY Balance Sheet (see Machinery and Equipment under Non-Current Assets). Assume all of the equipment, excep a hay baler and a livestock trailer were acquired on 12/31/2015. The baler was purchased two years ago (July 15, 2018) and the trailer was purchased one year ago (March 15, 2019). Some a the equipment is nearing the end of its useful life, but they only plan on replacing their general purpose tractor in the upcoming year. The dairy enterprise has 100 breeding age animals with a total original cost of $80,000. Additional assets in include office furniture and equipment and some stock certificate representing the cooperative investment. The original cost of these items is reported on the BOY Balance Sheet. The accumulated depreciation represents the total depreciated amounts for their real estate improvements, field equipment and machinery, office furniture and equipment, the establishment costs of the crop acreage, and breeding livestock. The Farm Financial Standards Council (FFSC) recommends reporting accumulated depreciation as a summary account for all assets rather than reporting individual depreciation amounts. The FFSC guidelines are used for this project. Crooked Tree Farms currently has two loans: 1) A 9-month operating loan for $56,000 at 2% originated on November 15, 2019 and is due on August 15, 2020. This is a current liability (e.g., Notes Payable Due within One Year). 2) A 3-year equipment loan (for the baler) of $51,000 (at a 6% annual interest rate) that originated on July 14, 2018. They have already made one payment and current outstanding balance is $34,000. The next payment is due on July 14, 2019 and will require a principal payment of $18,000 plus accrued interest. They owe $18,000 on the loan in the next 12 months (the current portion of a non-current liability) and $16,000 beyond the next 12 months (a non- current liability). The land and improvements were appraised in 2008 at a value of $2,400,000. Of this total $1,800,000 is for the land and 5600,000 is for the various buildings and improvements, including the family home. The value of the trees on the pistachio and cherry acreage is $320.000. As she has no immediate plans for selling the farm, she maintains this valuation on her books, even though the market value of her operation has changed since 2008. Real estate comprises the majority of Sarah's owner equity! Balance Sheet notes regarding the liabilities: NOTE: Please read the following very carefully as it explains the values on the BOY Balance Sheet and the starting balances in your ledger. THIS IS VERY IMPORTANT!! A - The BOY Balance Sheet total for Notes Pavable Due within One Year is $74,000. This includes the amount associated with the existing operating loan ($56,000) plus 2020's payment on the baler loan ($18,000). NOTE: The starting BOY LEDGER balance for Notes Payable Due within One Year is $56,000. B - Long term notes payable are a non-current liability as the loans cover multiple years. The current portion of these loans are equal to $18,000 and are included under the Notes Payable Due within One Year on the Balance Sheet (see footnote A above). The amount owed after the next twelve months is $16,000 and recorded under non-current liabilities on the Balance Sheet under Notes Payable, Non-Current. NOTE: The starting BOY LEDGER balance for Notes Payable, Non-Current is $34,000. Feeder Livestock Inventory Ralsed for Sale Feed Inventory Purchased for Use Crop Inventory Raised for Sale Prepaid Insurance 24,000.00 14,000.00 15,000.00 8,200.00 Transaction #18: Date: 5-29 Sarah receives a $36,000 loan for a new truck. The loan is for 5 years and has a 7% annual interest rate. 18 17 Transaction #19: Date: 6-2 Sarah and Matt buy a new truck (worth $42,000). In the deal, they trade-in their old truck. The truck dealership gives them $4,000 of trade-in value for their old truck and they pay the rest ($38,000) in cash. The old truck was purchased at a cost of $35,000 and has $30,000 of accumulated depreciation. The new truck has an expected salvage value of $4,200 and an expected life of 7 years. Transaction #27: Date: 8-1 Matt renews the farm's annual insurance policy. The new policy costs $24,000. 27 January 17, 2019 Transaction #38: Date: 11-14 Matt and Sarah take out a $250,000 farmland loan. The loan is for 15 years and has an annual interest rate of 3.5%. The first payment is due on February 14, 2021. Journal for Crooked Tree Farms, 2020 Page 1 # Date 1 Credit 1/6 Debit 2,000.00 2 1/17 2,000.00 8,200.00 3 1/28 8,200.00 300.00 4 2/8 300.00 700.00 5 2/13 700.00 5,500.00 6 2/25 5,500.00 18,600.00 7 3/2 18,600.00 43,700.00 8 3/10 43,700.00 12,000.00 2.400.00 9,600.00 9 3/13 2,400.00 10 3/17 2,400.00 2,800.00 11 3/27 2,800.00 14,900.00 Accounts # Accounts 1000 Cash 3130 Other Capital Contributions/Gifts/linheritances 6400 Gas and Diesel 1000 Cash 6750 Office Supplies 1000 Cash 1000 Cash 6611 Cattle Registration Fees 6720 Electricity 1000 Cash 5020 Purchased Feed 1000 Cash 1000 Cash 4201 Livestock Product Sales, Milk 6100 Wages Expense 2100 Taxes Payable 1000 Cash 6110 Payroll Tax Expense 1000 Cash 3110 Owner Withdrawals 1000 Cash 1000 Cash 4101 Cash Sales of Market Livestock 6510 Fertilizers 6520 Herbicides, Pesticides 1000 Cash 1000 Cash 1500 Breeding Livestock 1980 Accumulated Depreciation 1000 Cash 8200 Gains (losses) on Sales of Farm Capital Assets 1600 Machinery and Equipment 9100 Income Tax Expense 1000 Cash 1000 Cash 8400 Miscellaneous Revenue 1000 Cash 4300 Proceeds from Governement Programs 1000 Cash 2300 Notes Payable Non-Current 1600 Machinery and Equipment 1980 Accumulated Depreciation 8200 Gains (losses) on Sales of Farm Capital Assets 1000 Cash 1600 Machinery and Equipment 12 3/31 14,900.00 10,900.00 16,700.00 13 4/5 27,600.00 6,000.00 14 6,000.00 4/12 27,300.00 10,800.00 400.00 15 4/15 38,500.00 17,500.00 16 5/9 17,500.00 5,500.00 17 5/21 5,500.00 32,700.00 18 5/29 32,700.00 36,000.00 19 5/2 36,000.00 42,000.00 30,000.00 1,000.00 38,000.00 35,000.00 Tree Farms, 2020 Page 2 # Date 6/14 Debit Credit 20 74,900.00 21 74,900.00 6/19 9,100.00 22 6/21 9,100.00 32,700.00 23 32,700.00 6/25 2,300.00 24 7/2 2,300.00 3,500.00 25 7/14 3,500.00 18,000.00 2,040.00 20,040.00 26 7/23 1,300.00 1,300.00 27 8/1 24,000.00 28 8/7 24,000.00 68,200.00 68,200.00 29 8/15 56,000.00 840.00 30 56,840.00 8/27 7,600.00 31 9/3 7,600.00 Accounts # Accounts 1000 Cash 4000 Cash Crop Sales 6720 Electricity 1000 Cash 6311 Custom Hire Expense 1000 Cash 6631 Milking Supplies 1000 Cash 3110 Owner Withdrawals 1000 Cash 2310 Notes Payable Due within One Year 8100 Interest Expense 1000 Cash 6750 Office Supplies 1000 Cash 6700 Insurance 1000 Cash 1000 Cash 4201 Livestock Product Sales, Milk 2310 Notes Payable Due within One Year 8100 Interest Expense 1000 Cash 6401 Gas and Diesel 1000 Cash 1650 Office Furniture and Equipment 1000 Cash 6100 Wages Expence 2100 Taxes Payable 1000 Cash 6110 Payroll Tax Expense 1000 Cash 6761 Certification Fees 1000 Cash 1000 Cash 4000 Cash Crop Sales 5020 Purchased Feed 1000 Cash 6311 Custom Hire Expense 1000 Cash 1000 Cash 2400 Real Estate Notes Payable Non-Current 1800 Land, Building and improvements 1000 Cash 2300 Notes Payable Non-Curret 8100 Interest Expense 1000 Cash 1000 Cash 3120 Non-Farm Income 6110 Payroll Tax Expense 1000 Cash 4,000.00 32 9/16 4,000.00 14,000.00 2.800.00 11,200.00 33 9/20 2,100.00 34 4 10/6 2,100.00 2,800.00 35 10/8 2,800.00 52,700.00 36 10/22 52,700.00 14,200.00 37 10/31 14,200.00 21,800.00 38 11/14 21,800.00 250,000.00 39 11/17 250,000.00 255,000.00 40 11/29 255,000.00 4,000.00 1,260.00 41 12/12 5,260.00 12,000.00 42 12/28 12,000.00 700.00 700.00 The land and improvements were appraised in 2008 at a value of $2,400,000. Of this total $1,800,000 is for the land and $600,000 is for the various buildings and improvements, including the family home. The value of the trees on the pistachio and cherry acreage is $320,000. As she has no immediate plans for selling the farm, she maintains this valuation on her books, even though the market value of her operation has changed since 2008. Real estate comprises the majority of Sarah's owner equity. Sarah, Matt, and Jerry do most of the labor needed on the farm but at times of high need (e.g., harvest time for their tree crops) they may hire additional workers or contract out the work to custom hire organizations. Sarah and Matt do own a variety of field machinery and other equipment, the original cost of which is reported on Crooked Tree Farms' BOY Balance Sheet (see Machinery and Equipment under Non-Current Assets). Assume all of the equipment, except a hay baler and a livestock trailer were acquired on 12/31/2015. The baler was purchased two years ago (July 15, 2018) and the trailer was purchased one year ago (March 15, 2019). Some of the equipment is nearing the end of its useful life, but they only plan on replacing their general purpose tractor in the upcoming year. The dairy enterprise has 100 breeding age animals with a total original cost of $80,000. Additional assets in include office furniture and equipment and some stock certificate representing the cooperative investment. The original cost of these items is reported on the BOY Balance Sheet. The accumulated depreciation represents the total depreciated amounts for their real estate improvements, field equipment and machinery, office furniture and equipment, the establishment costs of the crop acreage, and breeding livestock. The Farm Financial Standards Council (FFSC) recommends reporting accumulated depreciation as a summary account for all assets rather than reporting individual depreciation amounts. The FFSC guidelines are used for this project. Crooked Tree Farms currently has two loans: 1) A 9-month operating loan for $56,000 at 2% originated on November 15, 2019 and is due on August 15, 2020. This is a current liability (e.g., Notes Payable Due within One Year). 2) A 3-year equipment loan (for the baler) of $51,000 (at a 6% annual interest rate) that originated on July 14, 2018. They have already made one payment and current outstanding balance is $34,000. The next payment is due on July 14, 2019 and will require a principal payment of $18,000 plus accrued interest. They owe $18,000 on the loan in the next 12 months (the current portion of a non-current liability) and $16,000 beyond the next 12 months (a non- current liability). Balance Sheet notes regarding the liabilities: NOTE: Please read the following very carefully as it explains the values on the BOY Balance Sheet and the starting balances in your ledger. THIS IS VERY IMPORTANT!! A - The BOY Balance Sheet total for Notes Payable Due within One Year is $74,000. This includes the amount associated with the existing operating loan ($56,000) plus 2020's payment on the baler loan ($18,000). NOTE: The starting BOY LEDGER balance for Notes Payable Due within One Year is $56,000. B - Long term notes payable are a non-current liability as the loans cover multiple years. The current portion of these loans are equal to $18,000 and are included under the Notes Payable Due with One Year on the Balance Sheet (see footnote A above). The amount ow after the next twelve months is $16,000 and recorded under non-current liabilities on the Balance Sheet under Notes Payable, Non-Current. NOTE: The starting BOY LEDGER balance for Notes Payable, Non-Current is $34,000