Refer to the data in BE9-4 for Keyser’s Fleece Inc. Prepare the journal entries for

(a) the wool harvested in the first six months of 2015, and

(b) when the wool harvested is sold for €10,500 in July 2015.

Data From BE 9-4

Keyser’s Fleece Inc. holds a drove of sheep. Keyser shears the sheep on a semiannual basis and then sells the harvested wool into the specialty knitting market. Keyser has the following information related to the shearing sheep at January 1, 2015, and during the first six months of 2015.

Transcribed Image Text:

Shearing sheep Carrying value (equal to net realizable value), January 1, 2015 74,000 Change in fair value due to growth and price changes 4,700 Change in fair value due to harvest (575) Wool harvested during the first 6 months (at NRV) 9,000