 Welcome to this Farm Accounting 101 presentation on sample accounting entry number 8, recording corn sales as a bank deposit. 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. As we have said in earlier presentations, the Farm Accounting 101 series is intended to help Alabama producers to improve their farm financial literacy. Farmers like any other small business have the same basic financial transactions every year, so we study typical checks and deposits. We also learn the accounting principles behind these checks and deposits. In today's sample entry, the farmer has sold corn and deposited the money into the farm checking account. In this sample entry, the farmer deposited $2,179.70 into the bank after selling corn to the local grain elevator. Note, some farmers keep more detailed production records than others. Many farmers would also want this entry to record the fact that they sold 614 bushels of corn for $3.55 per bushel on the bank deposit. Now let's change our view to the Excel spreadsheet. In this view of the Excel spreadsheet, please note that this entry is on sheet 1, where it says Part 1 Income, and this transaction is dated October 12, 2019. In the second column under column B, we've recorded that this is corn sales for the 2019 crop. The total dollar amount of the bank deposit is $2,179.70, and where do we allocate this deposit to? The answer is column G under line 2, sales of livestock, produce, grains, and other products you raised. So the $2,179.70 is recorded as an income item on the farm. Also on sheet 3, on this spreadsheet under the profit summary, here you can see that this $2,179.70 is shown as an income item under line 2 in our profit and loss summary. So it does impact the profit and loss report for the tax return. Now let's change back to the PowerPoint presentation. If you have not used the Excel spreadsheet in this series before, it is available. This spreadsheet is available for producers to download and to find the spreadsheet, select the ACES website at www.aces.edu, and select the topic tab entitled Farming, and then Farm Management to find the article entitled Using an Excel Spreadsheet for Farm Financial Records. There is a link to this spreadsheet embedded in the article. Now let's take a look at the accounting entry, which is a simple one. In line 1, cash, farm checking, which is a current asset of the farm, is debited and increases by the amount of the bank deposit for $2,179.70. The offsetting entry is a sale account, which is an income account. And in this instant, we are showing it as sales corn, which is an income account specifically for this farm. And it is credited for $2,179.70. And like all accounting entries, debit and credit entries must be in balance. And as a reminder note, farmers wishing to keep more detailed records are encouraged to add the number of bushels sold and price per bushel in the memo field of this deposit entry. We close by saying thank you for watching today's Farm Accounting 101 presentation on sample accounting entry number 8, recording corn sales as a bank deposit. 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 ASIS programs, please visit our website at www.aces.edu.