Question

Information for the next 3 questions. The transactions listed below are from a farmer using a single-entry cash accounting system. Using the information provided below to answer the questions that follow. Date Jul. 2012 Aug. 2012 Dec. 2012 Feb. 2013 Feb. 2013 Mar. 2013 Jul. 2013 Aug. 2013 Nov. 2013 Ref 6400 6600 4080 6750 4080 6400 4020 6600 6500 Description Crop expense Depreciation expense Livestock sales Feed and grain expense Livestock sales Crop expense Crop sales Depreciation expense Livestock expense Amount (S) $ 5,250 $ 2,100 $15,250 $13,200 $24,150 $ 6,500 $25,900 $ 2,300 $ 2,200 Question 14 (3 points) What is the net farm income for the calendar year 2012? $15,250 $13,150 $10,000 $7,900

Answer 1

Net Farm Income for Calendar Year 2012 = Live stock Sales - Crop Expense - Depreciation (assuming It is the Income used for tax purpose

= $(15,250-5,250-2,100) =$7,900

Net Farm Income for Calendar Year 2013 = Live stock Sales+Crop Sales -Live Stock Expense- Crop expense - Feed and Grain expense - Depreciation

= $(24,150+25,900-2,200-6,500-13,200-2,300) =$25,850

Net Farm Income from July 1, 2012 fiscal to June 30, 2013 = Live stock Sales 2012- Crop Expense2012- Depreciation 2012 + Live stock Sales 2013 - Crop Expense 2013 - Feed and Grain Expense 2013

=$(15,250-5,250-2,100+24,150-6,500-13,200) = $12,350

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