Required text: Wheeling, Introduction to Agricultural Accounting, 2008 ISBN or Printed Copy version: ISBN: 9780840172686 Ch 5 (reference)

The first five chapters of this book have outlined the procedures for the annual accounting procedures for a farm operation. These procedures culminate in accrual-adjusted financial statements that provide a report on the financial performance and financial position of the farm business. Marketbased financial statements can be prepared to accompany the cost-based financial statements. The closing entries com-plete the journal entries for each year and prepare the accounts for the next year. The following chapters provide details of various procedures needed to calculate the numbers shown on the financial statements. These chapters provide examples of disclosure notes and supplementary schedules to clarify the calculations. Various valu-ation methods for assets, liabilities, equity, revenues, and expenses are also presented. 5-2 - Use the unadjusted trial balance to the right and prepare a cash-basis income state-ment. Make list of the differences between this income statement and the accrual-adjusted income statement in Problem 5-1