Problem 1. At the beginning of the year, government agency purchases seven 1-year old pigs for P5,000 each. The following occurred during the period: • On June 30, 2021, twelve piglets were born. The FVLCS on this date is P1,500 each. • On July 1, 2021, three half-year old pigs were purchased for P3,500 each. • On December 31, 2021, fourteen piglets were born. FVLCS of which is P1,800 each. The FVLCS on December 31, 2021 are as follows: AGE FVLCS New born P1,800 0.5 year old P2,500 1 year old P4,500 2 years old P6,500 Journal entry relating to the purchase on January 1, 2021. d. Journal entry relating to June 30, 2021 e. Journal entry relating to July 1, 2021 f. Journal entry relating to December 31, 2021 g. Total carrying amount of the pigs on December 31, 2021.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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PROBLEMS Problem 1. At the beginning of the year, government agency purchases seven 1-year old pigs for P5,000 each. The following occurred during the period: • On June 30, 2021, twelve piglets were born. The FVLCS on this date is P1,500 each. • On July 1, 2021, three half-year old pigs were purchased for P3,500 each. • On December 31, 2021, fourteen piglets were born. FVLCS of which is P1,800 each. The FVLCS on December 31, 2021 are as follows: AGE FVLCS New born P1,800 0.5 year old P2,500 1 year old P4,500 2 years old P6,500 Journal entry relating to the purchase on January 1, 2021. d. Journal entry relating to June 30, 2021 e. Journal entry relating to July 1, 2021 f. Journal entry relating to December 31, 2021 g. Total carrying amount of the pigs on December 31, 2021. Problem 2. An entity purchased a livestock for P100,000. Transportation costs would be 15,000. a. How much is the fair value of the livestock? b. If there is no quoted price in an active market, the entity shall estimate the market price based on the following.
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