The Company has the following animals on January 1, 2020: Twenty 2-year-olds Thirty 1-year-olds During the year,
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Question:
- 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:
- On January 1, 2020, the Company purchased the following for P60,000:
- Five 0.5-year-olds
- Ten newborns
- On June 30, 2020, 10 animals were born.
- On June 30, 2020, the Company purchased the following for P40,000:
- Two 0.5-year-olds
- Eight newborns
- On December 31, 2020, the Company sold the following at FV - CTS:
- Ten 3-year-olds
- Five 0.5-year-olds
- On January 1, 2020, the Company purchased the following for P60,000:
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
- Journalize the above transactions plus the changes in FV-CTS at year-end.
- Compute for the total change in FV-CTS due to price change.
- Compute for the total change in FV-CTS due to physical change.
- Compute for the year-end balance of the biological assets.
- Prepare reconciliation of the year-end balance of the biological assets.
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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