Consider the amount and timing of the following transactionsmade by J. Doe
December, 2014 : Purchased, paid for and applied fertilizer forthe 2015 crop. $10,000.
April, 2015: Purchased and paid for seed, fuel, etc. $80,000
November 2015 : Half of crops sold for $90,000. The rest placedin storage to sell in 2016, valued currently at $90,000.
December 31, 2015: Accrued interest, $1,000.
January 15, 2016: Paid accrued interest.
May, 2016: Remaining 2015 crop sold. $105,000
- What is the 2015 net farm income under cash accounting? (Showwork.)
- What is the 2015 net farm income under accrual accounting?(Show work.)
