On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31, the cows gave birth to 15 calves. The following information on fair value less cost of disposal of biological assets is made available: (Refer to image) What amount of gain from biological assets will KAW Inc. report in its December 31 Income Statement? 2.5 year old cow on deceber 31 20,000 3 years old cow on december 31 25,000 new born calf on july 1 5,000 new born calf on december 31 6,500

On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31, the cows gave birth to 15 calves. The following information on fair value less cost of disposal of biological assets is made available: (Refer to image) What amount of gain from biological assets will KAW Inc. report in its December 31 Income Statement? 2.5 year old cow on deceber 31 20,000 3 years old cow on december 31 25,000 new born calf on july 1 5,000 new born calf on december 31 6,500

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...

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6. On July 1, KAW Inc. purchased 75 cows which, at that time were 2.5 years old for a total cost of P1,350,000. On December 31, the cows gave birth to 15 calves. The following information on fair value less cost of disposal of biological assets is made available: (Refer to image) What amount of gain from biological assets will KAW Inc. report in its December 31 Income Statement?
At the beginning of current year, an entity purchased 100 cows which are 3 years old for P15,000 each for the purpose of producing milk for the local community. On July 1, the cows gave birth to 20 calves. The active market, provided the fair value less costs to sell of the biological assets as follows: New born calf on July 1 - 4,000 New born calf on December 31 - 5,000 ½ year old calf on December 31 - 7,000 3 years old cow on December 31 - 18,000 4 years old cow on December 31 - 24,000 Required: Prepare the journal entries with supporting computation as applicable.
Rainbow Company has the following information pertaining to its biological assets for the year 2021.A herd of 100, 2-year old animals was held at January 2, 2021. Ten animals aged 2.5 years were purchased on July 1, 2021 for P5,400, and ten animals were born on July 1, 2021. No animals were sold or disposed of during the period. Per unit fair values less estimated cost to sell were as follows:· 2.0-year old animal at January 1, 2021- P5,000· Newborn animal at July 1, 2021- P3,500· 2.5-year old animal at July 1, 2021- P5,400· Newborn animal at December 31, 2021- P3,600· 0.5-year old animal at December 31, 2021- P4,000· 2.0-year old animal at December 31, 2021- P5,250· 2.5-year old animal at December 31, 2021- P5,550· 3.0-year old animal at December 31, 2021- P6,000What is the fair value of the biological assets as of December 31, 2021?
Rainbow Company has the following information pertaining to its biological assets for the year 2021.A herd of 100, 2-year old animals was held at January 2, 2021. Ten animals aged 2.5 years were purchased on July 1, 2021 for P5,400, and ten animals were born on July 1, 2021. No animals were sold or disposed of during the period. Per unit fair values less estimated cost to sell were as follows:· 2.0-year old animal at January 1, 2021- P5,000· Newborn animal at July 1, 2021- P3,500· 2.5-year old animal at July 1, 2021- P5,400· Newborn animal at December 31, 2021- P3,600· 0.5-year old animal at December 31, 2021- P4,000· 2.0-year old animal at December 31, 2021- P5,250· 2.5-year old animal at December 31, 2021- P5,550· 3.0-year old animal at December 31, 2021- P6,000What is the fair value of the biological assets as of December 31, 2021? A. 581,500 B. 554,000 C. 700,000 D. 735,000
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
Cattle Co. purchased cattle for P200, 000 on July 1, 2021. The cost of transporting the same to the farm was P2,000 and the company would have to incur cost similar transportation cost if it was to sell the cattle to auction. There is also an auctioneers fee of 2% based on sales price. What amount should the biological assets be initially recognized?
What is the fair value of the biological assets on December 31, 2021? AJUMA Farms operates a farm with various plants and a herd of animals. On January 1, 2021, it had ten (10) 1-year old animals and five (5) 2-year-old animals. On July 1, two animals were born. On December 31, 2021, three (3) 2-year-old animals were sold. Fair value less cost of disposal per unit are shown below: 1-year old animal on January 1 1-year old animal on December 31 2-year-old animal on January 1 2-year-old animal on December 31 3-year-old animal on December 31 New born animal on July 1 New born animal on December 31 500 600 650 800 950 300 350 0.5-year-old animal on December 31 400
Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?
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 reported on December 31, 2021?
On January 1, 2022, Plantitos Company purchased a vineyard costing P 12,000,000 which is determined to produce fruit for a period of 5 years. During the year, Plantitos harvested grapes with a fair value less cost to dispose of P 4,000,000. By the end of 2021, it sold the grapes for P 7,000,000. What amount should be reported as gross profit from sales? a. P 3,000,000 b. P 3 500,000 c. P 7,000,000 d. P4,000,000
A group of thirty 2-year old piggy was held by Ralph Ranch at January 1, 2022. Five one- year old piggy were purchased on January 5, 2022 for P8,000 each and ten were born on same date. No biological assets were disposed during the year. Per unit fair values less cost to sell were as follows: January 1 Age December 31 3-year old--- P16,500 2-year old 1-year old newborn -----P15,000 --11,200 8,500 6,000 11,600 8,800 6,500 The company discloses separately the increase in fair value less cost to sell due to physical change and change in fair value less cost to sell due to price change. How much is the increase in fair value due to physical change?
A group of thirty 2-year old piggy was held by Ralph Ranch at January 1, 2022. Five one- year old piggy were purchased on January 5, 2022 for P8,000 each and ten were born on same date. No biological assets were disposed during the year. Per unit fair values less cost to sell were as follows: Age December 31 3-year old------ P16,500 2-year old 1-year old newborn January 1 -P15,000 --11,200 8,500 6,000 11,600 8,800 6,500 The company discloses separately the increase in fair value less cost to sell due to physical change and change in fair value less cost to sell due to price change. What is the balance of biological assets at December 31, 2022?