Know Your Numbers, Know Your Options Class 1

 VIDEO Goal Setting (11 minutes)  

 Activity 1.1: After reading the “Introduction to Case Farms” (Page 3-4 of the workbook) write down at least one SMART goal for Case Farms. Be ready to share it during our class discussion

 VIDEO Record Keeping Part 1 (12 minutes)  

 ISU ArticleConverting Cash to Accrual Net Farm Income

 Activity 1.2: On what date will Jon and Joan Case recognize the following transactions by each accounting method?

  1.  Case Farm ordered seed for on 1/15/20XX. They received an invoice and paid for the seed on 3/15/20XX and received the seed 4/1/20XX. 
  2. Jon performed some custom harvesting work for their neighbor on 7/10/20XX, and immediately sent them an invoice. The neighbor paid them on 8/1/20XX. The check was deposited on 8/5/20XX. 
  3. Jon sold grain at harvest on 10/31/20XX. The Cases received the check for the grain 11/30/20XX but did not deposit it until 1/2/20XY. 

 VIDEO Record Keeping Part 2 (14 minutes) 

Activity 1.3: Jon & Joan Case are closing their books and must prepare a bank reconciliation for the following items. 

  1. Bank statement contains an ending balance of $56,776 on June 30th 20XX, whereas the Farm ledger shows an ending balance of $58,000
  2. The bank statement shows a service charge of $15.
  3. The bank statement shows interest income of $48
  4. Case Farms issued check #233 for $8,933 that has not yet cleared the bank.
  5. Case Farms deposited $10,000 but this did not appear on the bank statement.
  6. An ACH payment for electricity was paid from the bank account for $190

 What transaction entries, if any, need to be made to Jon and Joan Case’s records? 

Activity 1.4: Jon & Joan Case are closing their books and must prepare an inventory reconciliation. 

Their books show…

  1. At the beginning of the year, Case farms had 65,000 bushels of corn, 25,000 bushels of soybeans 8,000 bushels of wheat and 450 tons of alfalfa hay and 100 calves.
  2. They produced 87,500 bushels of corn, 13,750 bushels of soybeans 6,500 bushels of wheat and 550 tons of alfalfa hay.
  3. They purchased 250 calves and 50 tons of alfalfa hay.
  4. They seed 250 bushels of wheat, fed 20,000 bushels of corn and 750 tons of alfalfa hay, and had 7 calves die during the year.
  5. They sold 81,230 bushels of corn 15,000 bushels of soybeans 9,765 bushels wheat and 217 calves.

At the end of the year, they counted 50,450 bushels of corn, 23,800 bushels of soybeans, 4,500 bushels of wheat, 300 tons of alfalfa, and 125 calves.

 What is the discrepancy between their books and their actual ending inventory? 

 EXTRA VIDEO Livestock Record Keeping (9 minutes)