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    Financial Accounting Chapter 19 PDF

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    Baron Miranda
    Forester Company classified certain forest assets as biological assets totaling P6,000,000, comprising P5,100,000 for freestanding trees, P600,000 for land under trees, and P300,000 for roads in the forest. Land under trees and roads should be classified as property, plant, and equipment rather than biological assets. Therefore, the amount that should be reported as biological assets is P5,100,000. Africa Company purchased 2,000 llamas for P5,000,000. During the year, the fair value increased by P350,000 due to growth and price changes, P100,000 of wool was harvested but not yet sold, and fair value

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    Financial Accounting Chapter 19 PDF

    Uploaded by

    Baron Miranda
    3K views2 pages
    Forester Company classified certain forest assets as biological assets totaling P6,000,000, comprising P5,100,000 for freestanding trees, P600,000 for land under trees, and P300,000 for roads in the forest. Land under trees and roads should be classified as property, plant, and equipment rather than biological assets. Therefore, the amount that should be reported as biological assets is P5,100,000. Africa Company purchased 2,000 llamas for P5,000,000. During the year, the fair value increased by P350,000 due to growth and price changes, P100,000 of wool was harvested but not yet sold, and fair value

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    295171164-financial-accounting-chapter-19.pdf

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    Forester Company classified certain forest assets as biological assets totaling P6,000,000, comprising P5,100,000 for freestanding trees, P600,000 for land under trees, and P300,000 for roads in the forest. Land under trees and roads should be classified as property, plant, and equipment rather than biological assets. Therefore, the amount that should be reported as biological assets is P5,100,000. Africa Company purchased 2,000 llamas for P5,000,000. During the year, the fair value increased by P350,000 due to growth and price changes, P100,000 of wool was harvested but not yet sold, and fair value

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3K views2 pages

    Financial Accounting Chapter 19 PDF

    Uploaded by

    Baron Miranda
    Forester Company classified certain forest assets as biological assets totaling P6,000,000, comprising P5,100,000 for freestanding trees, P600,000 for land under trees, and P300,000 for roads in the forest. Land under trees and roads should be classified as property, plant, and equipment rather than biological assets. Therefore, the amount that should be reported as biological assets is P5,100,000. Africa Company purchased 2,000 llamas for P5,000,000. During the year, the fair value increased by P350,000 due to growth and price changes, P100,000 of wool was harvested but not yet sold, and fair value

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    FORESTER COMPANY AFRICA COMPANY

    Forester Company has reclassified certain assets as Africa Company purchased 2000 llamas at the
    biological assets. The total value of forest assets is begging of current year. These llamas will be
    P6,000,000 which comprises P5,100,000 sheared semiannually and their wool sold to
    freestanding trees, P600,000 land under trees and specialty clothing manufactures. The llamas were
    P300,000 roads in forest . purchased for P5,000,000. During the current year,
    the change in fair value due to growth and price
    What amount should be reported as biological changes is P350,000, the wool harvested but not
    assets? yet sold is valued at net realizable value of
    a.) 5,100,000 P100,000, and the decrease in fair value due to
    harvest is P50,000.
    b.) 5,700,000
    What is the carrying amount of the biological asset
    c.) 5,400,000 at year-end?

    d.) 6,000,000 a.) 5,300,000

    Land under trees and roads in forest should be b.) 5,400,000


    classified as property, plant, and equipment.
    c.) 5,400,000

    d.) 5,100,000

    SOLUTION

    Llamas purchased P5,000,000


    Change in fair value 350,000
    Wool harvested but not yet sold 100,000
    Decrease in fair value (50,000)

    Biological assets 5,400,000


    TEMERITY COMPANY
    Temerity Company has different kinds of farm
    animals on January 1, 2015.
    1. What is the carrying amount of the biological
    During the current year, several acquisitions assets on December 31?
    occurred related to these farm animals.
    a.) 3,160,000
    A detailed of these transactions is as follows: b.) 2,350,000
    c.) 2,800,000
    Carrying amount on January 1: d.) 2,380,000

    15 Horses (1 year old) 1,000,000 15 Horses 1,000,000


    10 Dairy Cattle (2 years old) 400,000 10 Dairy cattle 400,000
    8 Carabaos (2.5 years old) 200,000 8 Carabaos 200,000
    20 Hogs (3 years old) 500,000 20 Hogs 500,000
    Carrying amount-Jan 1 2,100,000
    Purchases on June 30: Purchases
    4 Dairy Cattle 150,000
    4 Dairy Cattle (1 year old) 150,000 6 Carabaos 100,000
    6 Carabaos (6 months old) 100,000 Total Biological Assets 2,350,000
    Fair value less cost of disposal on December 31:
    2. What is the gain from change in fair value
    15 Horses (1 year old) 1,200,000 attributable to price change?
    10 Dairy cattle (2 years old) 520,000
    8 Carabaos (2.5 years old) 250.000 a.) 810,000
    20 Hogs (3 years old) 550,000 b.) 450,000
    4 Dairy cattle (1 year old) 170,000 c.) 360,000
    6 Carabaos (6 months old) 110,000 d.) 0
    Fair value less cost of disposal in December 31:
    3.) What is the gain from changes in fair value
    15 Horses (2 years old) 1,350,000 attributable to physical change?
    10 Dairy cattle (3 years old) 580,000
    8 Carabaos (3.5 years old) 290.000 a.) 810,000
    20 Hogs (4 years old) 600,000 b.) 450,000
    4 Dairy cattle (1.5 years old) 200,000 c.) 360,000
    6 Carabaos (1 year old) 140,000 d.) 700,000
    There were no farm animals sold during the year
    and neither wee there any neither newborns nor
    deaths.

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