The Company has the following animals on January 1, 2020:

• Twenty 2-year-olds
• Thirty 1-year-olds

During the year, the Company made the following transactions:

1. On January 1, 2020, the Company purchased the following for P60,000:
   • Five 0.5-year-olds
   • Ten newborns
2. On June 30, 2020, 10 animals were born.
3. On June 30, 2020, the Company purchased the following for P40,000:
   • Two 0.5-year-olds
   • Eight newborns
4. On December 31, 2020, the Company sold the following at FV - CTS:
   • Ten 3-year-olds
   • Five 0.5-year-olds

The fair values less cost to sell on different dates are as follows:

January 1, 2020			June 30, 2020			December 31, 2020
Age	FV-CTS		Age	FV-CTS		Age	FV-CTS
2-year old	20,000		2-year old	21,000		3-year old	32,000
1-year old	13,000		1-year old	13,500		2-year old	22,000
0.5-year old	6,500		0.5-year old	7,000		1.5-year old	18,000
Newborn	2,500		Newborn	3,200		1-year old	14,000
						0.5-year old	8,000
						Newborn	3,500

Required:

1. Journalize the above transactions plus the changes in FV-CTS at year-end.
2. Compute for the total change in FV-CTS due to price change.
3. Compute for the total change in FV-CTS due to physical change.
4. Compute for the year-end balance of the biological assets.
5. Prepare reconciliation of the year-end balance of the biological assets.

Answer rating: 100% (QA)

1st January The biological assets 57500 Cash amount 60000 IncomePrior recognition of the BA 2500 Acquisition of the biological asset Note FVCTS on the ... View the full answer