Refer to the data in BE9.4 for Keyser's Fleece. Prepare the journal entries for (a) the wool harvested in the first 6 months of 2019, and (b) when the wool harvested is sold for €10,500 in July 2019.
Shearing sheep
Carrying value (equal to net realizable value), January 1, 2019...........€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