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Coluna Hereford Hank operates a ranch in De Soto Parish Louisiana. He has scheduled an appointment to visit his lender next week to secure a loan to cover his operating expenses for the next year. His banker wants his most recent balance sheet so Hank has hired you to prepare one for him Hi Tender told him that he also needed some evidence of profitability in the operation Accordingly, Hank has asked that you construct an accrual income statement for the past year ending January 31 He retrieved these transaction summaries for 2021/2022 from the extensive filing system he keeps in the glove box in his pickup Wanting to get a sense of what his income tax return might look like, Hank also ask that you prepare a cash income statement for the same accounting period as he has elected to account on a cal basis for tax purposes. He has given you the following summaries Item Corrent 1 Checking and savings account Accounts payable for feed & fuel Core L Hay equipment (market value) JD 7410 Tractor (market value) Land (marloet value) Accrued Real Estate Taxes Feb 1 2021 Feb 1 2022 S 66,301 $ 69,080 18.500 28,500 65,000 63,000 55,000 50.000 1,100,000 1.200,000 17.817 17.820 240 Ton $205/ton 200 Ton $205/ton CHLY Curitiset Alfalfa Hay Proraibesinde Hank does not normally do this, but he seized an opportunity last fall and purchased $7.300 of his protein supplement needs last year, but the supplement is scheduled to be delivered this year. His mortgage payments and balances on his property are summarized in the following table. His equipment loan payments and balances are summarized in the following table His operating loan terms were identical for both years Date 2/1/2021 2/1/2022 Payment 165,850 165,850 Interest Paid 10,850 10,850 Principal Paid 155,000 155,000 Accrued Interest, 2-1 10.850 10.850 Table 2. Land Mortgage Amortization Table for 2021 and 2022 Date Payment Interest Paid Principal Paid Accrued Interest, 2-1 3/1/2021 32,526 24,229 8,297 22,210 3/1/2022 32,526 23,814 8,712 21.829 after Pyret was not Balance 476,275 467,563 Table Thractor Loan Amortisation Table for 2021 and 2022 Interest Paid Principal accrued Interest, 2.1 Balance 7770 1072 501 136 3361 1.682 6.088 1,121 675/2021 675722022 His cattle inventories Number of Head 2021 321 71 Number of Head 2022 331 76 $/unit 91.89/ewt 71/cwt LY00 so Cows (1250 lbs) replacement heifers (1050 lbs) bulls (2000 lbs) Market Livestock (1050 lbs) 8 250 9 110 87/cwt 128.03/cwt 3311350 90/100 His transactions over the past year include: Paid nephew $8,540 for labor during the past summer Sold 120 ton of alfalfa hay for $22,200 last September Sold 75 heifer calves last October for $60.750 Total feed purchased throughout the year summed to $62,350 Total fuel. repairs, and supplies paid were $58,651 Sold 45 cull cows (raised, will count as revenue) in January for $39,500 Sold 250 steers and heifers in March for $281.000. Received $16,500 for putting up neighbor's hay crop this August Machinery depreciated by $8,000 over the year. Based on the information Hank has given you, construct a balance sheet, accrual basis income statement, and cash basis income statement in Excel for his operation as of February 1, 2022 summarizing this information using the standard balance sheet and income statement categories and subcategories discussed in the lecture Submit your printed hard-copy results and your Excel workbook file (via the moodle) before the due date prescribed. (Hint: Consider selecting Landscape orientation and make use of Excel's Print Preview so that Dillu lude the Honor Pintu Coluna Hereford Hank operates a ranch in De Soto Parish Louisiana. He has scheduled an appointment to visit his lender next week to secure a loan to cover his operating expenses for the next year. His banker wants his most recent balance sheet so Hank has hired you to prepare one for him Hi Tender told him that he also needed some evidence of profitability in the operation Accordingly, Hank has asked that you construct an accrual income statement for the past year ending January 31 He retrieved these transaction summaries for 2021/2022 from the extensive filing system he keeps in the glove box in his pickup Wanting to get a sense of what his income tax return might look like, Hank also ask that you prepare a cash income statement for the same accounting period as he has elected to account on a cal basis for tax purposes. He has given you the following summaries Item Corrent 1 Checking and savings account Accounts payable for feed & fuel Core L Hay equipment (market value) JD 7410 Tractor (market value) Land (marloet value) Accrued Real Estate Taxes Feb 1 2021 Feb 1 2022 S 66,301 $ 69,080 18.500 28,500 65,000 63,000 55,000 50.000 1,100,000 1.200,000 17.817 17.820 240 Ton $205/ton 200 Ton $205/ton CHLY Curitiset Alfalfa Hay Proraibesinde Hank does not normally do this, but he seized an opportunity last fall and purchased $7.300 of his protein supplement needs last year, but the supplement is scheduled to be delivered this year. His mortgage payments and balances on his property are summarized in the following table. His equipment loan payments and balances are summarized in the following table His operating loan terms were identical for both years Date 2/1/2021 2/1/2022 Payment 165,850 165,850 Interest Paid 10,850 10,850 Principal Paid 155,000 155,000 Accrued Interest, 2-1 10.850 10.850 Table 2. Land Mortgage Amortization Table for 2021 and 2022 Date Payment Interest Paid Principal Paid Accrued Interest, 2-1 3/1/2021 32,526 24,229 8,297 22,210 3/1/2022 32,526 23,814 8,712 21.829 after Pyret was not Balance 476,275 467,563 Table Thractor Loan Amortisation Table for 2021 and 2022 Interest Paid Principal accrued Interest, 2.1 Balance 7770 1072 501 136 3361 1.682 6.088 1,121 675/2021 675722022 His cattle inventories Number of Head 2021 321 71 Number of Head 2022 331 76 $/unit 91.89/ewt 71/cwt LY00 so Cows (1250 lbs) replacement heifers (1050 lbs) bulls (2000 lbs) Market Livestock (1050 lbs) 8 250 9 110 87/cwt 128.03/cwt 3311350 90/100 His transactions over the past year include: Paid nephew $8,540 for labor during the past summer Sold 120 ton of alfalfa hay for $22,200 last September Sold 75 heifer calves last October for $60.750 Total feed purchased throughout the year summed to $62,350 Total fuel. repairs, and supplies paid were $58,651 Sold 45 cull cows (raised, will count as revenue) in January for $39,500 Sold 250 steers and heifers in March for $281.000. Received $16,500 for putting up neighbor's hay crop this August Machinery depreciated by $8,000 over the year. Based on the information Hank has given you, construct a balance sheet, accrual basis income statement, and cash basis income statement in Excel for his operation as of February 1, 2022 summarizing this information using the standard balance sheet and income statement categories and subcategories discussed in the lecture Submit your printed hard-copy results and your Excel workbook file (via the moodle) before the due date prescribed. (Hint: Consider selecting Landscape orientation and make use of Excel's Print Preview so that Dillu lude the Honor Pintu

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