On Jan. 1, 2020, an entity purchased 100 cows which are three(3) years old for P16,000 each for the purpose of producing milk for the local community. On July 1, 2020 the cows gave birth to 30 calves. The fair value less estimated point of sale costs are as follows: New born calf on July 1, 2020 P6,000 7,000 New born calf on Dec. 31, 2020 2 year old calf on Dec. 31, 2020 9,000 3 year old cow on Dec. 31, 2019 20,000 22 007 3 year old cow on Dec. 31, 2020 4 year old cow on Dec. 31, 2020 23,000 26,000 0 There is milk harvested during the year but not sold. At fair value less estimated point of harvest cost, the milk is worth P250,000. REQUIRED: i. Prepare all the indicated entries for 2020 to recognize the transactions relating to biological assets. 2. indicate the financiai statement presentation of the accounts related to biological assets.
On Jan. 1, 2020, an entity purchased 100 cows which are three(3) years old for P16,000 each for the purpose of producing milk for the local community. On July 1, 2020 the cows gave birth to 30 calves. The fair value less estimated point of sale costs are as follows: New born calf on July 1, 2020 P6,000 7,000 New born calf on Dec. 31, 2020 2 year old calf on Dec. 31, 2020 9,000 3 year old cow on Dec. 31, 2019 20,000 22 007 3 year old cow on Dec. 31, 2020 4 year old cow on Dec. 31, 2020 23,000 26,000 0 There is milk harvested during the year but not sold. At fair value less estimated point of harvest cost, the milk is worth P250,000. REQUIRED: i. Prepare all the indicated entries for 2020 to recognize the transactions relating to biological assets. 2. indicate the financiai statement presentation of the accounts related to biological assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Help me to answer completely the Required 1 & 2 of this problem. Thank you so much!
Transcribed Image Text:PROBLEM 5-6
On Jan. 1, 2020, an entity purchased 100 cows which are three(3) years old for
P16,000 each for the purpose of producing milk for the local community. On July 1, 2020
the cows gave birth to 30 calves.
13
The fair value less estimated point of sale costs are as follows:
New born calf on July 1, 2020
P6,000
7,000
New born calf on Dec. 31, 2020
1/2
2 year old calf on Dec. 31, 2020
9,000
3 year old cow on Dec. 31, 2019
3 year old cow on Dec. 31, 2020
20,000
23,000
22 007
4 year old cow on Dec. 31, 2020
26,000 0
There is milk harvested during the year but not sold. At fair value iess estimated
point of harvest cost, the milk is worth P250,000.
REQUIRED:
1. Prepare all the indicated entries for 2020 to recognize the transactions relating to
biological assets.
2. indicate the financiai statement presentation of the accounts related to biological assets.
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