Create a transaction log for I.M. Farmer based on the following information for calendar year 2019. Create the balance sheet for December 31, 2019. Use the 200% declining balance method (not MACRS) for depreciable assets. Finally, allow the cash account to be negative for the transaction log if necessary.

Accounts and Inventory at Start of Year:

500 acres of land bought for $400/acre

Account payable at Joe’s Feed and Seed $4,200

Big Farm Stock 200 shares @ $50 per share

Buildings and Improvements $48,000

Checking account balance $5,400

Farm mortgage payment due 4/1 each year. Pay $15000 principal annually and $25000 accrued interest this year. $300,000 principal remaining.

Farm pick-up bought for $23,000 in 2017 with an expected useful life of 10 years and a salvage value of $2,000.

Growing wheat 280 acres @ $22.50 per acre

Hay on hand 75 tons @ $50 per ton

Invested $100,000 to start business

Note payable at Bank One due 3/1 $52,000

Other machinery and equipment $80,500

Outstanding account receivable $1,600

Shop equipment $2,000

Additional Information:

1. Borrowed $18,000 for farm operating expenses from Bank One in May.

2. Bought 30 bags of seed corn at $80 per bag from Garst in February.

3. Invest $50,000 in business in April.

4. Made payment to AgCo Finance for combine loan of $24,800 in August. $20,000 was principal, $4,800 was interest.

5. Pay federal taxes of $7,200 in April

6. Traded a tandem disk to Smith Implement for a new one priced at $16,000 in April. Dealer allowed $9,000 trade-in value for old disk and remainder was paid in cash.

Answer rating: 100% (QA)

Answer Transaction Log January Bought 30 bags of seed corn at 80 per bag from Garst Made a payment t... View the full answer