The following preadjusted balance sheet was prepared by the accountant for Logan Farms Corp.: Required: Using the balance sheet and the additional information, prepare the adjusting entries to record items (a) to (g). Managment would like you as the outside consultant to prepare a new Balance Sheet to reflect entries (a) to (g) and show the adjusting entries which include the depreciation which has not been recorded in entries (c) and (d).

Logan Farms Corp. Balance Sheet December 29, 2012
Assets
Cash ...................................................	$ 271,500
Investment securities ..................................	315,000
Accounts receivable ....................................	270,000
Inventories ............................................	501,000
Total current assets .................................	1,357,500
Land, buildings, and equipment .........................	1,452,000
Total assets ...........................................	$2,809,500
Liabilities and Stockholders' Equity
Accounts payable .......................................	$ 342,420
Estimated losses from future crop failures .............	360,000
Salaries payable .......................................	150,000
Total current liabilities ............................	$ 852,420
10% Bonds payable (due in 10 years) ....................	525,000
Capital stock ..........................................	450,000
Retained earnings Unappropriated........................	982,080
Total liabilities and stockholders' equity .............	$2,809,500

Required: Use the following additional information and record an adjusting entrybased upon the managment's assertion for each transaction (a) to (g).

	(a). Cash is held in a checking account and a savings account with balances of $69,450 and $202,050, respectively. The cash in the savings account will be used to support operations in the event of a crop failure. Since this is restricted, management has decided that the $202,050 should be in the Investments section since it is restricted cash. The entry is Investment Cash Fund Cash
	(b). A loan to the company President for $200,000 that is to be repaid within one year is included in "Accounts receivable." Management wants this to be shown as an Officer Receivable instead of accounts receivable. Other accounts receivable of $90,000 is considered to be 95 percent collectible so an Allowance for doubtful accounts must be established.

(c) The company has only one account of $501,000 called Inventories that include other assets. The storage building is for storage of finished goods inventory. The company wants you to establish a Finished Goods Inventory, a Supplies Inventory account and set up Building and an Accumulated Depreciation-Bldg account. GAAP require that Inventory should only be considered Finished Goods Inventory.

Inventories include:
Finished products ................................	$390,000
Supplies .........................................	19,500
Storage buildings (net of $30,480 depreciation) ..	91,500
Total ..........................................	$501,000

The entry is:

Finished Goods Inventory

Supplies

Building

Inventories 501,000

Depreciation Expense

Accumulated Depreciation

	(d). "Land, buildings, and equipment" included all the operational assets lumped together includes 5 tractors that were purchased near the end of the year for $360,000 (shown net of a $300,000, 5-year loan used to buy the tractors). The balance of the account consists of land that was purchased for $1,200,000 and buildings that were purchased for $255,000 (shown net of depreciation of $63,000). GAAP require that the company specify three assets, Land, Buildings, & Equipment with Accumulated Depreciation of $63,000. The entry is: Land Buildings Equipment Land, Bldg, Equipment 1,452,000 Depreciation Expense Accumulated Depreciation - Building
	(e.) Included in "Accounts payable" are $105,000 of long term liability advances from customers for future delivery of merchandise. Management wants the balance sheet to show a liability account-Customer Advance Payable for $105,000.
	(f). The company has 90,000 shares of $5 par value common stock issued and outstanding. The common stock was originally sold for $7 per share which is a $2.00 paid in capital, and the entire amount was included in "Capital Stock." Management feels that the account, Paid In Capital should be shown at $180,000. The entry is Capital Stock Paid In Capital
	(g). After reading a U.S. Meteorological Service report, the president believes that next year will be a bad crop year due to freak hailstorms and estimates the company will lose about $50,000. Company management determines that the company should record an Investment account-Cash Fund for Future Losses for $50,000 and take this amount from cash.