Question on: SS2 Agriculture - Farm Accounts II
The following entries entered into the books of Johnson and Son's farm:
- Revenue from Crop Sales
- Amount: ₦2,000,000
- Revenue from Livestock Sales
- Amount: ₦1,500,000
- Revenue from Dairy Products
- Amount: ₦600,000
- Revenue from Poultry Sales
- Amount: ₦800,000
- Other Agricultural Income
- Amount: ₦200,000
- Cost of Goods Sold (Crop Production)
- Amount: ₦800,000
- Cost of Goods Sold (Livestock)
- Amount: ₦450,000
- Cost of Goods Sold (Dairy Products)
- Amount: ₦180,000
- Cost of Goods Sold (Poultry)
- Amount: ₦300,000
- Operating Expenses (Labor, Utilities, and Maintenance)
- Amount: ₦550,000
- Marketing and Advertising Expenses
- Amount: ₦100,000
- Depreciation of Farm Equipment
- Amount: ₦90,000
These entries represent a simplified Profit and Loss Account for Johnson and Son's Farms, outlining revenue, costs of goods sold, and various operating expenses.
Use the entries to prepare a Profit and Loss Account for Johnson and Son's Farms.
Profit and Loss Account for Johnson and Son's Farms
|
Description |
Amount (₦) |
|
Revenue: | |
|
Revenue from Crop Sales |
2,000,000 |
|
Revenue from Livestock Sales |
1,500,000 |
|
Revenue from Dairy Products |
600,000 |
|
Revenue from Poultry Sales |
800,000 |
|
Other Agricultural Income |
200,000 |
|
Total Revenue |
5,100,000 |
|
Cost of Goods Sold: | |
|
Cost of Goods Sold (Crop Production) |
800,000 |
|
Cost of Goods Sold (Livestock) |
450,000 |
|
Cost of Goods Sold (Dairy Products) |
180,000 |
|
Cost of Goods Sold (Poultry) |
300,000 |
|
Total Cost of Goods Sold |
1,730,000 |
|
Gross Profit |
3,370,000 |
|
Operating Expenses: | |
|
Labor, Utilities, and Maintenance |
550,000 |
|
Marketing and Advertising Expenses |
100,000 |
|
Depreciation of Farm Equipment |
90,000 |
|
Total Operating Expenses |
740,000 |
|
Net Profit Before Tax |
2,630,000 |
|
Income Tax Expense (Assuming 30%) |
789,000 |
|
Net Profit After Tax |
1,841,000 |
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