18AT PROBLEMS 8-1 Using the information in the chapter for the Farmers' second productive year for the apple orchard and the information below for the third year, determine the amount to be reported on the balance sheet for Cash Investment in Growing Crops. Then calculate the Change in Cash Investment in Growing Crops. Assume that the crop was not harvested by the end of the year and prepare the journal entry. Then prepare a partial income statement and balance sheet for the effects of the third year. The financial statements for the second year reported the following: Income Statement: Cash Crop Sales Effect on Gross Revenue Operating Expenses + Change in Investment in Growing Crops Net Effect on Operating Expenses Balance Sheet: Assets: Cost and Market $2,900 Net Effect on Net Farm Income from Operations Cash Investment in Growing Crops The information for the third year includes the following: Cash sales of second year crop = $3,000 Cash expenditures for third year's crop = $2,600 250 $2,900 250 $3,150 $2,750 8-2 Continuing with the Farmers' dairy herd in this chapter and using the information below, calculate Change in Value Due to Change in Quantity of Raised Breeding Livestock and Gains/Losses Due to Changes in General Base Values of Breeding Livestock for Year 4. Start by preparing a valuation table using the group approach, multiple transfer points, and the short version for animals sold. and three of the calves that were born

PROBLEMS 8-1 Using the information in the chapter for the Farmers' second productive year for the apple orchard and the information below for the third year, determine the amount to be reported on the balance sheet for Cash Investment in Growing Crops. Then calculate the Change in Cash Investment in Growing Crops. Assume that the crop was not harvested by the end of the year and prepare the journal entry. Then prepare a partial income statement and balance sheet for the effects of the third year. The financial statements for the second year reported the following: Balance Sheet: Assets: Cash Investment in Growing Crops $2,750 The information for the third year includes the following: Cash sales of second year crop =$3,000 Cash expenditures for third year's crop =$2,600 8-2 = Continuing with the Farmers' dairy herd in this chapter and using the information below, calculate Change in Value Due to Change in Quantity of Raised Breeding Livestock and Gains/Losses Due to Changes in General Base Values of Breeding Livestock for Year 4. Start by preparing a valuation table using the group approach, multiple transfer points, and the short version for animals sold. Cash Investment in Growing Crops $2,750 The information for the third year includes the following: Cash sales of second year crop =$3,000 Cash expenditures for third year's crop =$2,600 8-2 Continuing with the Farmers' dairy herd in this chapter and using the information below, calculate Change in Value Due to Change in Quantity of Raised Breeding Livestock and Gains/Losses Due to Changes in General Base Values of Breeding Livestock for Year 4. Start by preparing a valuation table using the group approach, multiple transfer points, and the short version for animals sold. In the fourth year, seven new calves were born and three of the calves that were born last year became bred heifers. The bred heifer from last year moved into the Cow category. The Farmers sold one of the cows in the fourth year for $450. The base values in each group increased by $50 per head. 8-3 = Suppose that the Farmers had purchased the farm for $500,000, which included land, buildings, and improvements. The market value was $250,000 for the land, $100,000 for the buildings, and $50,000 for the improvements. Determine the amount to allocate to the land, buildings, and improvements. 8-4 - Suppose that the Farmers decided to tear down all of the buildings that they purchased in Problem 8-3 two years after they purchased the farm because they planned to sell all of the beef and dairy cattle and wanted to set up a hog operation instead. Prepare the journal entry to record the loss on the discarding of the buildings two years after the purchase