Investment in Growing Crops is a prepaid expense reported on the balance sheet. These are prepaid expenses to produce a crop which is not yet harvested. Each month during the growing season, these costs are accumulated on the balance sheet. When the crop is sold these costs are removed from the balance sheet and reported as cost of goods sold on the profit and loss statement. Example of costs to include in growing crop investment would be: farm labor, repairs & maintenance, seed, fertilizer, fuel, insurance, utilities and any other direct cost associated with the growing crop.
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