Agriculture company for natural production was established in December,2019, purchased 2000 milking cows for $2,200,000. The unrealized
Question:
Agriculture company for natural production was established in December,2019, purchased 2000 milking cows for $2,200,000. The unrealized gain or losses was debited for 200,000 for cows and the inventory milk harvested at 31/12/2019 was 1000 Liters at 3S each, the following are economic events incurred during January 2020: 1/1/2020 the company purchased harvest milk machine by paid $31,190 cash and 5 payments for $6000 every six month and beginning today (use 6%). (useful life 8 years with $ 6000 salvage value). 1/1/2020 sold all milk inventory at 3.5$ for each liter. 1/1/2020 AC. Co. purchased 500 milking cows for $500,000. 2/1/2020 signed two years contract non- canceled to cut the trees from the land as timber for $ 800,000 2/1/2020 1800 Liters of milk was harvested; each one Liter of milk has 2.5 S selling price. 03/1/2020 sold the milk for 4.25$ each L. 10/1/2020 purchased 1000-tons fodder 3/15, n/30 for $8,000. 15/1/2020 5000 Liters of milk was harvested; each one Liter milk has 2$ selling price. 6/1/2020 sold half of the milk harvested for $6250 at account. 8/1/2020 sold all the milk inventory for $5000 at account. 19/1/2020 paid half of amount due for purchased fodder. 26/1/2020 paid the reminder balance for purchased fodder. 31/1/2020 the contract to cut timber decreased $200,00 in price. 31/1/2020 the cow's growth internally to 3500 cows and valued S1050 each at fair market. 31/12/2020 2000 liters of milk was harvested for 2$ each. 31/1/2020 the balance for the doubtful account was debited $2500, the aging of account receivables indicated that the account was uncollectible S12500 31/1/2020. 31/12/2020 purchased 500-tons fodder 3/10, n/30 for $5,000, F.O.B shipping point from the south and the appropriate party paid $200 freight and will reach in 1/2/2020.
Required:
1) Journalize the economic events and the adjusted entries if the company used perpetual inventory system and net discount method
2) Prepare multiple-step income statement for January 2020 if inventory of fodder was 500 tons without in transit, the company paid 2500 wages, 300 electricity, 200 water, rent for two years 2400 and incurred but not paid for month $250 heat.
3) The income should be taxable at 5%.
Expert Answer:
Net Discount Method Purchases and accounts payable are recorded at net If payment is made beyond the ... View the full answer
