Situation 1 - An entity has a herd of 150 sheep. The sheep are sheared once a quarter to harvest very valuable wool used in designer clothes. The following information relates to the herd: Carrying amount of the herd - July 1, 2019 Change in fair value due to growth and price change Decrease in fair value due to harvest Wool harvested during the first quarter 2,400,000 200,000 50,000 300,000 The wool was sold for P650,000.

Situation 1 - An entity has a herd of 150 sheep. The sheep are sheared once a quarter to harvest very valuable wool used in designer clothes. The following information relates to the herd: Carrying amount of the herd - July 1, 2019 Change in fair value due to growth and price change Decrease in fair value due to harvest Wool harvested during the first quarter 2,400,000 200,000 50,000 300,000 The wool was sold for P650,000.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 36P

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1- Mt. Horeb Alpaca Co. has a herd of 150 alpacas. The alpacas are sheared once a quarter to harvest very valuable alpaca wool that is used in designer sweaters. Mt. Horeb has the following information related to the alpaca herd at July 1, 2019, and during the first quarter of the fiscal year. Alpaca Carrying value (equal to net realizable value), July 1, 2019 Change in fair value due to growth and price changes Decrease in fair value due to harvest Alpaca wool harvested during the first quarter (at net realizable value) $110,000| 7,000 (795) 12,000 Instructions (a). Prepare the journal entries for Mt. Horeb's biological asset (Alpaca herd) for the first quarter. (b). Prepare the journal entries for the Alpaca wool harvested in the first quarter. (c). Prepare the journal entry when the Alpaca wool is sold for $13,500.
PT Milkisu produced milk for sale to local and national cream producers. The entity began operations at a beginning of current year by purchasing 500 milk cows for CU8.000.000. The entity had the following information available at year-end relating to the cows:Carrying amount of milking cows, Jan 1 8.000.000Change in fair value due to growth and price change 900.000Decrease in fair value due to harvest 200.000Milk harvested during the year but not sold 400.000 Prepare journal entries to record the gain from change in fair value of agricultural produce
PT Milkisu produced milk for sale to local and national cream producers. The entity beganoperations at a beginning of current year by purchasing 500 milk cows for CU8.000.000.The entity had the following information available at year-end relating to the cows:Carrying amount of milking cows, Jan 1 8.000.000Change in fair value due to growth and price change 900.000Decrease in fair value due to harvest 200.000Milk harvested during the year but not sold 400.000Required: 1. Is the natural breeding of animals in zoos and game parks agricultural activity?2. Is ocean fishing agricultural activity?3. Is palm plantation agricultural activity? Describe the accounting treatment forbiological assets and agricultural products in oil palm plantations
PT Milkisu produced milk for sale to local and national cream producers. The entity beganoperations at a beginning of current year by purchasing 500 milk cows for CU8.000.000.The entity had the following information available at year-end relating to the cows:Carrying amount of milking cows, Jan 1 8.000.000Change in fair value due to growth and price change 900.000Decrease in fair value due to harvest 200.000Milk harvested during the year but not sold 400.000Required:Discuss and prepare journal entries:1. To record the acquisition of milking cows2. To record the net gain from the change in fair value of the milking cows3. To record the gain from change in fair value of agricultural produce
Show your computation On 1 January 2021, a company had a herd of 1,500 cows, all of which were 3 years old. At this date, the fair value less point of sale costs of the herd was $900,000. On 1 July 2021, the farmer purchased 500 cows (each two and half years old) for $700 each. As at 31 December 2021, The company sold 800 cows for $825 each. The herd also produced 2.5 tons milk that could be sold for $4 per kg in the market. Market auctioneers have charged a sales levy of 2% for each cow. Required: Discuss the accounting treatment of the above in the financial statements for the year ended 31 December 2021.
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 a. Compute for the change in FVLCS due to price change b. Compute for the change in FVLCS due to physical change c. 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…
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 An entity purchased a livestock for P100,000. Transportation costs would be 15,000. 1. How much is the fair value of the livestock? 2. If there is no quoted price in an active market, the entity shall estimate the market price based on the following
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…
Al-Buraimi Ceramics LLC on 1st January 2021 purchases 1000 tonnes of lime stones for OMR 500,000. It purchased another lot of 500 tonnes on 1st March 2021 for OMR 100,000. The company follows first in first out method of issuing inventories. On 31st August 2021, it consumed 400 tonnes for manufacturing of ceramics. Estimate the value of Lime stones on 30tt September 2021. a.OMR 100,000 b.OMR 500,000 c.OMR 700,000 d.OMR 400,000
Prepare journal entry for delivery of equipment. A leading vegetable organic farm named Fresh organics wants to purchase a harvest machine from Murray where the contract stipulated to pay P150,000 as advance payment on Dec 1 2020. Harvester cost of P110,000 delivered on Dec 30, 2020.
The following information relates to Puregold Price Club Inc. (PPCI) for the year 2022. PPCI has a pricing policy that allows 30% profit on the sales price. Unearned Revenue from Gift Certificates Outstanding, January 01, 2022 - P250,000 Gift certificates sold during the year - P900,000 Gift certificates issued relating to sales promotion during the year - P100,000 Gift certificates redeemed during the year - P900,000 Gift certificates relating to the entity’s promotion that expired during the year - P12,500 Additional outstanding gift certificates expected to expire in 2022 - P6,000 How much is the unearned revenue from gift certificates outstanding at December 31, 2022?
4. A manufacturing organization had 6000 Kg. of direct material with total cost of Rs. 600,000 as at April 1, 2019. During the month two times direct material was purchased. On Aprol 5, 2019 10,000 Kg. of direct material was purchased @ Rs. 104.8 per Kg. and on April 20, 2019 12000 Kg. of direct material was purchased at a total cost of Rs. 1320,000. During the month 25000 Kg. of direct material was used in production (Assume only one type of material is used in production) and direct labour cost of Rs. 1250,000 and factory overhead cost of Rs. 1100,000 was incurred. On April 1, 2019 cost of work in process inventory was Rs. 500,000 and on April 30, 2019 cost of work in process inventory was Rs. 400,000. Required: Calculate cost of direct material used during April 2019, cost of direct material inventory as at April 30, 2019, cost of goods manufactured during April 2019 assuming periodic inventory system under each of the following methods separately:…