Happy Valley Henssupplies local restaurants and grocery stores with free-range eggs.Recently, they began raising baby chicks and hens for sale toconsumers at farmers markets.

The market sellsbaby chicks that will turn into egg-laying hens at a price of $1each. A young hen that has just started laying eggs sells for $15.It takes approximately one year from the time a chick hatches untilit becomes an egg-laying hen.

Assume costs to sell are 10% of thevalue of the chick/hen.

Required:

1. Prepare the journal entry for the initial measurement of onebaby chick.

1. Assuming the baby chick has matured into an egg-laying hen atthe end of the next reporting period, prepare the journal entry torecord the change in value.

Answer rating: 100% (QA)

Answer 1 Journal entry for the initial measurement of one baby chick Assets Biological Assets Baby C... View the full answer