Sharin Sdn Bhd is in the business of sheep farming. In January 2012, a herd of 400 sheep aged two years old was imported from Australia at a cost of RM300 per sheep. The only change in 2012 was increase in physical attributes due to ageing from two to three years. On January 1, 2013, Sharin Sdn Bhd purchased another herd of 800 sheep, aged one-month old, at a price of RM100 per sheep. Transportation costs amounted to RM16,000. In February 2013, two of the sheep aged 3 years old were found dead by a worker. During 2013, the company slaughtered 350 of the xeat-old sheep and their mutton were sold for RM1,000 per sheep. Expenses incurred for the year ended December 31, 2003 are as follow: Feed costs and farming supplies Farm labour and supervision Depreciation of farm buildings and facilities Relevant fair values per sheep are as follows: RM40,000 30,000 9,000 FV per sheep as at 31 December 2012 (RM) 250 350 450 550 FV per sheep as at 31 December 2013 (RM) 150 300 400 500 600 One month One year Two years Three years Four REQUIRED: (a) Prepare the joumal entries for the above transactions for year 2012 and 2013. December (b) Draft the income statement of Sharin Sdn Bhd for the year ended 31 December 2013.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sharin Sdn Bhd is in the business of sheep farming. In January 2012, a herd of 400 sheep aged two years old was imported from Australia at a cost of RM300 per sheep. The only change in 2012 was increase in physical attributes due to ageing from two to three years. On January 1, 2013, Sharin Sdn Bhd purchased another herd of 800 sheep, aged one-month old, at a price of RM100 per sheep. Transportation costs amounted to RM16,000. In February 2013, two of the sheep aged 3 years old were found dead by a worker. During 2013, the company slaughtered 350 of the xeat-old sheep and their mutton were sold for RM1,000 per sheep. Expenses incurred for the year ended December 31, 2003 are as follow: Feed costs and farming supplies Farm labour and supervision Depreciation of farm buildings and facilities Relevant fair values per sheep are as follows: RM40,000 30,000 9,000 FV per sheep as at 31 December 2012 (RM) 250 350 450 550 FV per sheep as at 31 December 2013 (RM) 150 300 400 500 600 One month One year Two years Three years Four REQUIRED: (a) Prepare the joumal entries for the above transactions for year 2012 and 2013. December (b) Draft the income statement of Sharin Sdn Bhd for the year ended 31 December 2013.
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