Floyd County, Iowa | pknoeber - 1/5/2019 08:46
Prepaid expenses and investment in a growing crop is a current asset, which is definitely part of the balance sheet.
My guess is that the OP wants to claim full expected revenue as an asset. The only asset would be the purchased seed, chemical, fertilizer, land rent etc... which eventually are converted to income through the growing crop. Once harvested that value then translates back from the income statement to the balance sheet as either inventory or cash if it’s sild right away.
Not an accountant or banker, but are you sure you can count rent as an asset? To me, that's an expense to (hopefully) plant a crop.
Again, to me, the seed, chems, fert, ets is an asset, until taken out of the shed and planted. Anything between planting and harvest is speculation. |
I need a banksplination
