Question

What is the solution for question B?

à homework1-2019 a Search in Document Home Insert Draw Design Layout References Mailings Review View Share P comments 龟.da | Times New v 12 v A"A" Aa v Ap -v-v-v -- 2+ Heading 1 Strong No SpscingSube E Cash vs. Acerual Accounting 1, Consider the amount and timing of the following transactions made by I.M. Farmer Novembat 2018 Purchased, paid for and applied fertilizer for the 2019 grain crop $38,000. b. March 2019 Purchased and paid for seed, chemicals, fuel, other variable costs. $65,000 c. Oetober 2019 Purchased and charged to account fuel for drying. $4,000. d. November 2019 Part of grain sold for S72,000. Rest placed in storage, valued at S70,000. e. December 31, 2019 Accrued interest totals $1,200, f January 2020 Paid bill for fuel used to dry grain $4,000 8. January 2020 Paid accrued interest, $1,200. h. May 2020 Remaining 2014 grain sold. S65,000. A) What is the 2019 profit under cash accounting? (Show work) B) What is the 2019 profit under accrual accounting? (Show work.) C) Which system is the most accurate reflection of actual farm profit? Why Page 1 of 1 155 words English | United States) Focus + 100%

Answer 1

As you asked to answer question B i am answering that

trading account

Particulars	debit	particulars	credit
Fertilizer purchase	38000	sales	72000
Seed and chem purchase	65000	closing inventory	70000
Fuel for drying	4000
Accrued interest	1200
Gross profy	33800
	142000		142000

So profit under accrued accounting is 33800