: Green Farms also had records of their income and expenses. Prepare the income statement that they would need to present to the bank. • Green Farms has Cash Sales of Market Livestock & Crop which totaled $35,000 . During the summer, the barn collapsed, and they received an insurance check for $5,000 • They received a reimbursement check from USDA/NRCS for $8,000 The had the following expenses: Purchased feed @ $2,000 o They paid wages for hired help @ $4,000 o They purchased additional supplies @ $2,500 o They purchased lubricants for the old tractor @ $200 o They paid the farm water bill @ $300 They had depreciation expense @ $00 o The incurred a loss on the sale of a tractor @ $800 Their income tax in the amount of $500 o

: Green Farms also had records of their income and expenses. Prepare the income statement that they would need to present to the bank. • Green Farms has Cash Sales of Market Livestock & Crop which totaled $35,000 . During the summer, the barn collapsed, and they received an insurance check for $5,000 • They received a reimbursement check from USDA/NRCS for $8,000 The had the following expenses: Purchased feed @ $2,000 o They paid wages for hired help @ $4,000 o They purchased additional supplies @ $2,500 o They purchased lubricants for the old tractor @ $200 o They paid the farm water bill @ $300 They had depreciation expense @ $00 o The incurred a loss on the sale of a tractor @ $800 Their income tax in the amount of $500 o

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Description: STEP 2: Green Farms also had records of their income and expenses. Prepare the incomestatement that they would need to present to the bank.Green Farms has Cash Sales of Market Livestock & Crop which totaled $35,000During the summer, the barn collaps

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 1PA: For each of the following situations write the principle, assumption, or concept that justifies or...

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Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows: A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution. B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs. C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account. D) Reliable pays $600 rent for the first month. E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future. F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash. G) Sharon takes a cash withdrawal of $2,500. After all of the transactions, what is the amount of total assets? A)25,200 B)5,200 C)24,200 D)20,200
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