 Welcome to this Farm Accounting 101 presentation on 10 typical farm accounting entries every farm bookkeeper should understand. I'm Robert Page, Regional Extension Agent and member of the Farm and Agribusiness Management Team with the Alabama Cooperative Extension System at Auburn University. The Farm Accounting 101 series is intended to help Alabama producers improve their farm financial literacy. To do this, we begin with discussing the typical checks and deposits made by farmers each year. Farmers, like any other small business, have the same basic financial transactions every year. We will be studying the accounting principles behind these typical checks and deposits to better understand how to keep accurate and complete financial records. Good financial reports like an income statement and a balance sheet help the farmer to better manage farm operations. Let's get started by listing the 10 typical farm accounting entries every bookkeeper should understand. These are checks and deposits that are posted in the vast majority of Alabama farmers' checkbooks sometime during the year. 1. Paying a bill from the local farm co-op from the farm checking account. 2. Paying for a piece of farm equipment from the farm checking account. 3. Buying a piece of farm equipment with a cash down payment, equipment trade-in and financing the balance. 4. Entering the farm checking account deposit for a 12-month operating loan from an ag lender. Continuing our top 10 transactions, let's keep going. 5. Using the farm checking account debit card to record a personal non-farm expense. 6. Purchasing farm supplies with a farm credit card, not a debit card. 7. Making a payment on a farm loan, including interest and principal portions of the payment. 8. Recording cash deposits of farm crop sales. Now we are up to our final two typical transactions in our list. 9. Recording deposits of farm contract poultry flock sales, including loan repayments with interest. 10. Transferring money from farm savings accounts to farm checking accounts or vice versa. Note, while there are many possible farm accounting entries, they will mostly be variations of one of these typical transactions. If you can understand these transactions, and similar to, but different transactions from these, you should be able to keep accurate and complete farm financial records. If you are watching this presentation and are already confused or discouraged, don't let these new concepts get you down on yourself. Everyone has to learn these concepts as we learn bookkeeping principles. In future farm accounting 101 presentations, we will take these 10 typical checks and deposits and explain the accounting theory behind each transaction. Then we will demonstrate how to enter the sample transaction into either an Excel spreadsheet or QuickBooks Pro software one step at a time so you can see how it's done. We close by saying thank you for watching today's presentation. This segment of the Farm Accounting 101 series has been produced by the Alabama Cooperative Extension System Farm and Agribusiness Management Team at Auburn University in Auburn, Alabama. For additional information on the Farm and Agribusiness Management Team and other ACES program, please visit our website at www.aces.edu.