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Upon successful completion of this course, students will be able to:
1. Explain the value of agricultural records to a successful agricultural enterprise.
2. Define common agricultural bookkeeping terms.
3. Select a record keeping system.
4. Design and explain a set of agricultural accounts.
5. Demonstrate the principles of accrual accounting by opening, analyzing and entering transactions and closing a set of double-entry accounting records.
6. Create a balance sheet.
7. Summarize an agricultural accounting system using the worksheet.
8. Calculate measures of earnings applicable to agricultural records and construct an income statement.
9. Determine efficiencies of an agricultural business through the use of accounts and determine the cost per unit of production.
10. Contrast the basic methods of depreciation and calculate yearly depreciation.
11. Construct inventory analysis procedures.
12. Utilize computer spreadsheet templates for common accounting analyses.
13. Determine the payroll for employees given the major deductions.
14. Explain Social Security records and requirements.
15. Explain the basis for agricultural income tax computing.
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A. Importance of Record Keeping
1. Record keeping objectives
2. Components of agricultural records and accounting systems
3. Accounting periods
B. Principles of Accounting
1. Single-entry accounting
2. Double-entry accounting
3. Accrual versus cash bases of accounting
C. Kinds of Agricultural Accounts and Record Keeping Systems
1. Single entry systems
2. Double entry systems
3. Enterprise accounting
4. Computerized accounting
5. Employee records
6. Production records
7. Social Security records
8. Depreciation and inventory records
9. Budgets and cash flow records
10. Various accounting systems available
a. University of California Record Book
b. Ideal System Account Book
c. New Holland One-Book System
D. Types of Entries and Their Uses
1. Diary
2. Inventory
3. Receipts
4. Expenses
5. Accounts payable
6. Accounts receivable
7. Balance sheets (net worth or financial statement)
8. Profit/loss statement
9. Others
E. Accounting Cycle
1. Beginning balance sheet (net worth statement)
2. Opening entries
3. Recording transactions
a. Journal entries
b. General ledger posting
4. Trial balances
5. Correcting entries
6. Adjusting entries
7. Adjusted trial balance
8. Closing entries
9. Post-closing trial balance
10. Ending balance sheet
11. Profit and loss statement
12. Worksheet
F. Income Statements
1. Different forms
2. Profit/loss ratios
G. Asset Valuation and Depreciation
1. Depreciable asset definitions
2. Depreciation methods
3. Depreciation calculation
4. Book versus market valuation
5. Depreciable asset disposal and capital gains
6. Inventory valuation and control
H. Liabilities and Debt
1. Calculating simple interest loans
2. Transactions involving loans and loan payments
a. Determining current principle loan balances
b. Determining interest payable
3. Loan applications
4. Cash flow budgets
I. Computerized Records and Analysis
1. Computer spreadsheet programming
2. Records and analysis templates using computer spreadsheet programs
J. Payroll Accounting
1. Allowable deductions
2. Reporting requirements
K. Social Security
1. Deductions
2. Separate accounts and deposits
3. Reporting procedures
L. Income Tax (Federal)
1. Cash or accrual basis
2. Proper entries
3. Allowable deductions
4. Depreciation requirements
5. Capital gains tax
M. Complete Problem from Diary to Income and Cost Analyses
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Farmer's Tax Guide-Current yearly edition
Accounting for Agriculture: Skidmore, Richard, Soft Data, Lancaster, CA 1995 (classic)
Financial Accounting: Hermanson, Roger, Richard D. Irwin, 1999 (classic)