Reference no: EM133146775

Question - Organic Farm Inc. was established in January 1, 2015. During the year, following transactions took place:

1. On February 1 2015 a cash contribution made by the owner for $35000 for capital stocks to start the business.

2. On March 1 2015, the farm purchased a Kubota tractor for $17000; paid $6000 cash and signed a note for $11000 payable in August 31 2015 with no interest. For 2015 the tractor depreciation is $1200.

3. On March 15 paid $1500 for wages to farm workers

4. On March 16 purchased on account two-year property insurance policy for $6000

5. Purchased $10500 of livestock (farm animals) inventory with cash.

6. Sold $4500 livestock on account, costing $2000

7. Paid $1200 to purchase Office Supplies

8. Sold for cash fruit and vegetables during the year for $19000 (ignore cost of goods sold)

9. Received $1700 from a customer to deliver fresh vegetables in 2016

10. Additional information becomes available on December 31 2015: Office Supplies on hand was $400, and company owed $650 to employees.

Required -

A - Analyze and record above transactions as journal entries (use T accounts) for the December 31 2015.

B - What are adjusting entries?

C - What is net income?

D - What is total assets?