November 2021

Purchased and applied fertilizer for the 2022 grain crop. $27,000.

March 2022

Purchased seed, chemicals, fuel, other variable costs. $43,700.

October 2022

Purchased and charged to account fuel for drying.

$3,300.

November 2022

Part of grain sold

$78,500

Rest placed in storage and valued at

$55,500

December 31, 2022

Accrued interest

$1,200

January 2023

Paid bill for fuel used to dry grain.

$3,300

January 2023

Paid accrued interest

$1,200

May 2023

Remaining 2022 grain sold

$65,000

2022

		Cash Accounting	Accrual Accounting
Grain Sales
Grain Inventory
	Total Revenue
Fertilizer
Seed, Chemicals, Fuel, Other Variable Costs
Fuel for Drying
Interest Expense
	Total Expenses
	Net Farm Profit

2023

		Cash Accounting	Accrual Accounting
Grain Sales
Grain Inventory
	Total Revenue
Fertilizer
Seed, Chemicals, Fuel, Other Variable Costs
Fuel for Drying
Interest Expense
	Total Expenses
	Net Farm Profit
	Cash Accounting	Accrual Accounting
2022 Net Farm Profit
2023 Net Farm Profit
Combined Profit (add previous two)
Remove Inventory from Accrual Combined Profit (SUBTRACT)		-
Remove Double Entry from Accrual Accounting (ADD BACK DOUBLE EXPENSES)		+
Net Profit (They should be equal!)