Under Sales Method
Grennel Farm Income Statement As at year end December 31, 2009
Sales Less: Cost of goods sold Beginning Inventory Add: Production Cost of goods available for sale Less: Ending Inventory Gross Sales Expenses Salaries and wages Insurance Taxes Depreciation Other expenses Net Income
522,000 107,730 107,730 15,390
92,340 429,660
72,500 4,500 32,500 28,500 45,000
183,000 246,660
Grennel Farm Balance Sheet As at year end December 31, 2009 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Noncurrent Assets Land Machinery Less: Accumulated Depreciation Total Noncurrent Assets Total Assets Liabilities Notes and Accounts Payable Owner's Equity Common Stock Additional Paid-In Capital Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity Sales (2.9*180,000) Production (.513*210,000) Ending Inventory (.513*30,000) Accounts Receivable (2.98*20,000)
30,900 59,600 15,390 105,890
375,000 412,500 300,000 112,500 487,500 593,390
33,000
7,500 450,000 102,890 560,390 593,390 522,000 107,730 15,390 59,600
Under Collection Method
Grennel Farm Income Statement As at year end December 31, 2009
Sales Less: Cost of goods sold Beginning Inventory Add: Production Cost of goods available for sale Less: Ending Inventory Gross Sales Expenses Salaries and wages Insurance Taxes Depreciation Other expenses Net Income
462,400 107,730 107,730 25,650
82,080 380,320
72,500 4,500 32,500 28,500 45,000
183,000 197,320
Grennel Farm Balance Sheet As at year end December 31, 2009 Assets Current Assets Cash Accounts Receivable Inventory Total Current Assets Noncurrent Assets Land Machinery Less: Accumulated Depreciation Total Noncurrent Assets Total Assets Liabilities Notes and Accounts Payable Owner's Equity Common Stock Additional Paid-In Capital Retained Earnings Total Owner's Equity Total Liabilities and Owner's Equity Sales (2.9*180,000) - A/R (2.98*20000) Production...