Honey Company has a herd of 10 2-year old animals on January 1, 2019. One animal aged 2.5 years waspurchased on July 1, 2019 for P108, and one animal was born on July 1, 2019. No animals were sold ordisposed during the year. The active market provided the following fair value less cost to sell:2- year old animal on January 12.5 - year old animal on July 1New born animal on July 12- year old animal on December 312.5 - year old animal on December 31New borm animal on December 3110010870105111723- year old animal on December 310.5 - year old animal on December 3112080Required:1. Prepare all indicated entries for the current year to recognize the transactions relating to the biological asset.2. Indicate the financial statement presentation of the accounts related to the biological assets.

1. Fair value Physical change:- Fair value change due to increasing the age of biological assets not…

Answered: purchased on July 1, 2019 for P108, and…

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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(Mulitple Choice Question) Marshall Inc. owns an automobile costing $40,000. The automobile was purchased on January 1, 2016, and has is estimated to have a useful life of 8 years and a residual value of $3000. On January 1, 2020 it is discovered that the automobile has a market value of $15,000. Marshall Inc. should therefore: 1. Take no action, as no transaction is required in this situation 2. None of the answers are correct 3. Record an Impairment loss of $8125 4. Record an impairment loss of $3500 5. Record an Impairment loss of $6500
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Sows company established at January 2016 to produce foods and medicine for animals, the company purchased a heavy equipment for production which cost 1,200,000 with 10 years useful Jife and 100,000 salvage value, the company used doble declining method for depreciation and W.A for inventory. In 31/12/2019 the company changes its inventory method to FIFO, and its depreciation method to straight line; the following reported income before tax for the previous years income FIFO dividend paid 160,000 250,000 Year income at W.A 2016 370,000 390,000 410,000 395,000 2017 420,000 2018 300,000 380,000 320,000 2019 280,000 200,000 The differences in income just related for change in inventory method, income for 2020 under FIFO before tax was $150,000 after deductible 98304 depreciation expenses at doble declining method, the company declared $45,000 cash dividend and $50,000 share dividend. The accumulated depreciation at 31/12/2020 S806,784. Required: if the 25% income tax didn't change during…
. The following information pertains to Romantic Baboy's biological assets for the year 2022. Carrying amount, January 1, 2022 - P780,000 FV less cost to sell of livestock purchased during the year - P340,000 Increase in FV less cost to sell due to physical changes - P180,000 Increase in FV less cost to sell due to price changes - P40,000 FV less cost to sell of livestock sold during the year - P890,000 How much biological assets was reported by Romantic Baboy at December 31, 2022?
Purchased a used heavy duty truck for $83,500 on January2, 2016, It was repaired at a cost of $3,420 and installed on a new platform costing $1,080. The useful life will be 6 years,. Residual value is $14,800 on Sep30, 2021, it was retired: 1) sold it for 15,000 2) sold it for $19,500 Please prepare all the calculation and related entries.
On December 30, 2021, the Green Pasteur Farms slaughtered cows with fair value of P 400,000. Estimated cost to sell of P 20,000 includes transportation cost of P 3,000 to bring the cows to slaughter house, and another transportation cost of P 2.000 to bring the carcasses to the market. At year-end, no meat had been sold but its fair value on this date is P 410,000 while its net realizable value is P 405.000. What amount should the agricultural produce be recorded on December 30, 2021? a. P 383,000 b. P 382,000 c. P400,000 d. P 385,000
The following costs pertain to a new delivery truck that was purchased on March 31, 2020. All costs were paid in cash. Calculate how much the truck will be capitalized as an asset for the truck. How much will be expensed? You are not required to prepare a journal entry. Cost of Truck $30,000 Delivery charges $1,300 Ongoing gasoline purchases each week $ 200 Sales Tax $2,100
Please don't given handwriting solution....
5. Determine the total gain from change in fair value as of December 31, 2019. * 626,400 831,600 1,004,400 1,080,000 None of the choices
On1October 2021 Kim's Bakery acquired a new store at a cost of $650,000. The firm accounts for the store using the revaluation model and depreciates the store over 30 years with a nil residual value. The firm assesses the fair value of the store at the following values:30 June 2022: $710,00030 June 2024: $410,000No changes are made to the estimated residual value and useful life from their original levels over this period of time.RequiredProvide all required journal entries needed on:1.30 June 2022;2. 30 June 2023;3. 30 June 2024.
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