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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
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!) |
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