Question 1

Moo Farm needs to prepare a Balance Sheet. Following are several pieces of information they have collected. They have asked for your help to prepare a Balance Sheet as of December 31, 2020.

1. The farm bank account has a balance of $12.250.

2. Their operating loan balance with the Mid Atlantic Farm Credit is $60,000, with an accumulated interest of $5,000. Both principal and interest are due on June 1.

3. Their stockbroker sent the farm's end of year statement, which has a balance of $103,000

4. They have 10,000 bu. of soybeans in storage. This has been contracted for May delivery at $8.00 per bushel.

5. Their account balance with Jojo (their seed supplier) as of December 31, 2020, was $3,600.

6. They have 100 bags of purchased seed in storage for which they paid $40 per bag.

7. The farm's tractor, which cost $50,000 when it was purchased in 2017, has a net book value of $35,000.

8. The form has several older buildings that have a depreciated value of $215,000.

9. They own 100 acres of farmland that they purchased five years ago for $125.000.

10. Mr. and Mrs. Moo also own a vacation home worth $300,000.

11. They owe $200,000 for the purchase of the farm. They have no payment due until January 1, 2022.

12. Total sales for the year 2020 were $295,000. All items were fully paid for by customers.

a). What was the value of Moo Farm's current assets on December 31st, 2020?

b). What was the value of Moo Farm's non-current assets on December 31st, 2020?

c). What was the value of Moo Farm's current liabilities on December 31st, 2020

d). What was the value of Moo Farm's long-term liabilities on December 31st 20207

e). What was Moo Farm's net worth on December 31st 20202

f). Under which section of the balance sheet did you classify the vacation home owned by Mrs. Moo

g). Under which section of the balance sheet did you classify the balance of 103,000 mentioned in

#3 above?

h). What is the value of the farm's tractor in the balance sheet as of December 31, 2020?

i). Under which section of the balance sheet did you classify the total sales made in 2020:

j). Which of the depreciation methods would you suggest the farm use to depreciate its 100-acre land?