Dean Farmer recently won the lottery, and used his winnings to purchase a farm in 2018. Dean did not go to college, but rather grew up on a farm, worked as a cabinet maker for 10 years, and then won the lottery. He was able to generate a beginning balance sheet, however he did not have experience with depreciation or market adjustments.
Cash |
24,000 |
Interest payable |
10,650 |
Fuel and oil expense |
37,000 |
Interest paid |
11,850 |
Property tax payable |
16,000 |
Supplies on hand |
18,000 |
Labor expense |
18,000 |
Repair expense |
36,900 |
Property taxes paid |
15,000 |
Insurance expense |
10,500 |
Accounts receivable |
32,000 |
Feeder livestock purchases |
20,000 |
Feed purchases |
15,000 |
Crop sales (corn and wheat) |
350,750 |
Corn Inventory |
120,000 |
Principal paid-Beef Loan |
10,000 |
Prepaid expenses |
20,000 |
Principal paid-Farm Mortgage |
20,000 |
Livestock sales |
17,500 |
Government program payments |
2,000 |
Crop expenses |
220,000 |
Other livestock expenses |
12,000 |
Market Livestock Inventory |
36,000 |
Accounts Payable |
17,000 |
Wheat Inventory |
50,000 |
Feed on Hand |
70,000 |
Create the Beginning Balance Sheet (Jan 1, 2019) in a new spreadsheet.
For Dean | ||||
Cost Basis Balance Sheet as at 1-1-2019 | ||||
A | Equity and Liabilities | Amount ($) | ||
1 | Share capital (Balancing figure in Balance sheet) | 617750 | ||
2 | Non Current Liabilities | |||
(i) | Long Term Borrowings (given) | 75000 | ||
3 | Current Liabilities | |||
(i) | Accounts Payable | 17000 | ||
(ii) | Other Accrued Expenses (Note 2) | 53500 | ||
Total | 763250 | |||
B | Assets | |||
1 | Non Current Assets | |||
2 | Current Assets | |||
(i) | Inventory (Note 3) | 520750 | ||
(ii) | Livestock (Note 4) | 33500 | ||
(iii) | Feed (Note 5) | 55000 | ||
(iv) | Supplies on hand | 18000 | ||
(v) | Accounts Receivable | 32000 | ||
(vi) | Cash (Note 1) | 104000 | ||
Total | 763250 | |||
Note 1: Cash workings | ||||
Closing balance of Cash (31-12-2019) | 24000 | |||
Add Back: Expenses paid during the year | ||||
Fuel and oil expense | 37000 | |||
Labor expense | 18000 | |||
Property taxes paid | 15000 | |||
Feed purchases | 15000 | |||
Prepaid expenses | 20000 | |||
Crop expenses | 220000 | |||
Interest paid | 11850 | |||
Repair expense | 36900 | |||
Insurance expense | 10500 | |||
Feeder livestock purchases | 20000 | |||
Principal paid-Beef Loan | 10000 | |||
Principal paid-Farm Mortgage | 20000 | |||
Government program payments | 2000 | |||
Other livestock expenses | 12000 | |||
Less: Cash realised during the year | ||||
Livestock sales | 17500 | |||
Crop sales (corn and wheat) | 350750 | |||
Net Opening Cash Balance | 104000 | |||
Note 2: Other Accrued Expenses | ||||
Particulars | Closing Payable | Paid | Opening Payable | |
Property Tax | 16000 | 15000 | 31000 | |
Interest | 10650 | 11850 | 22500 | |
Total | 53500 | |||
Note 3: Inventory | ||||
Closing Inventory: | ||||
Corn | 120000 | |||
Wheat | 50000 | |||
Total Closing Inventory | 170000 | |||
Total Sales (Corn and Wheat) | 350750 | |||
Therefore, Total Opening Inventory | 520750 | |||
Note 4: Livestock | ||||
Total Closing Livestock Inventory | 36000 | |||
Livestock Sales | 17500 | |||
Feeder livestock purchases | 20000 | |||
Therefore, Total Opening Livestock | 33500 | |||
Note 5: Feed | ||||
Total Closing Feed on Hand | 70000 | |||
Feed purchases | 15000 | |||
Therefore, Total Opening Feed | 55000 | |||
Dean Farmer recently won the lottery, and used his winnings to purchase a farm in 2018....
Balance Sheet, Jan 1, 2019 Current Assets Cost Current Liabilities Cost Cash 13,000 Accounts Payable 35,000 Corn Grain Inventory 20,000 Interest Payable 11,850 Wheat Inventory 10,000 Principal Farm Mortgage 20,000 Prepaid expenses 5,500 Principal Beef Loan 10,000 Feed on hand 80,000 Operating Loan 75,000 Market Livestock 32,000 Property Taxes Payable 15,000 Accounts Receivable 2,000 Supplies 4,000 Total current assets 166,500 Total current liabilities 166,850 Intermediate Assets Intermediate Liabilities Machinery 300,000 Beef Loan 100,000 Beef Breeding Stock 55,000 Titled Vehicles 26,000...
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