Give the necessary journal entries for the following transactions of Old McJollibee Farms during the year: 1. On January 1, 2021, the farm purchased two (2) animals with fair value less cost to sell of P 15,000 for P12,000. 2. On July 1, 2021, ten (10) animals were born with fair value less cost to sell of P 3,000 each. 3. On December 31, 2021, the farm sold the 10 (10) animals at Fair Value less cost to sell of P 10,000 each. 4. On December 31, 2021, the change in fair value due to growth was P 20,000. 5. On December 31, 2021, the change in fair value price fluctuation was P 10.000, 6. On December 31, 20201, the decrease in fair value due to harvest was P 5,000. SOLUTION GUIDE:

Give the necessary journal entries for the following transactions of Old McJollibee Farms during the year: 1. On January 1, 2021, the farm purchased two (2) animals with fair value less cost to sell of P 15,000 for P12,000. 2. On July 1, 2021, ten (10) animals were born with fair value less cost to sell of P 3,000 each. 3. On December 31, 2021, the farm sold the 10 (10) animals at Fair Value less cost to sell of P 10,000 each. 4. On December 31, 2021, the change in fair value due to growth was P 20,000. 5. On December 31, 2021, the change in fair value price fluctuation was P 10.000, 6. On December 31, 20201, the decrease in fair value due to harvest was P 5,000. SOLUTION GUIDE:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Give the necessary journal entries for the following transactions of Old McJollibee Farms during the year:
1. On January 1, 2021, the farm purchased two (2) animals with fair value less cost to sell of P 15,000 for
P12,000.
2. On July 1, 2021, ten (10) animals were born with fair value less cost to sell of P 3,000 each.
3. On December 31, 2021, the farm sold the 10 (10) animals at Fair Value less cost to sell of P 10,000 each.
4. On December 31, 2021, the change in fair value due to growth was P 20,000.
5. On December 31, 2021, the change in fair value price fluctuation was P 10,000.
6. On December 31, 20201, the decrease in fair value due to harvest was P 5,000.
SOLUTION GUIDE:
No.
Account Names
Debit
Credit
1
Select]
| Select)
| Select ]
| Select]
Cash
12,000
2.
| Select )
| Select |
[ Select
[ Select ]

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