Scribd Logo
Upload

Welcome to Scribd!

  • 497 views

    Answers Biological Assets

    Uploaded by

    Janella Gail Arenas
    The document contains information about biological assets held by a company over multiple periods. It provides beginning and ending balances of biological assets each period, details purchases and sales of biological assets, and the increases and decreases in fair value due to physical changes and market price changes. Journal entries are presented to record the transactions and fair value adjustments for the biological assets each period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Answers Biological Assets

    Uploaded by

    Janella Gail Arenas
    497 views4 pages
    The document contains information about biological assets held by a company over multiple periods. It provides beginning and ending balances of biological assets each period, details purchases and sales of biological assets, and the increases and decreases in fair value due to physical changes and market price changes. Journal entries are presented to record the transactions and fair value adjustments for the biological assets each period.

    Original Title

    ANSWERS-BIOLOGICAL-ASSETS

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains information about biological assets held by a company over multiple periods. It provides beginning and ending balances of biological assets each period, details purchases and sales of biological assets, and the increases and decreases in fair value due to physical changes and market price changes. Journal entries are presented to record the transactions and fair value adjustments for the biological assets each period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    497 views4 pages

    Answers Biological Assets

    Uploaded by

    Janella Gail Arenas
    The document contains information about biological assets held by a company over multiple periods. It provides beginning and ending balances of biological assets each period, details purchases and sales of biological assets, and the increases and decreases in fair value due to physical changes and market price changes. Journal entries are presented to record the transactions and fair value adjustments for the biological assets each period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Problem 5 – 2

    a.
    Beginning Balance of Biological Assets 12/31/2018 2.800,000
    Add: Purchases of biological assets during 2018
    Purchase Price 3,200,000
    Less: Fair valuation loss on initial recognition (150,000) 3,050,000
    Add: Increase in fair value due to biological transformation 2,000,000
    Less: Decrease in fair value due to harvest (1,000,000)
    Ending Balance of Biological Assets, 12/31/2019 6,850,000

    b.
    Fair valuation loss on initial recognition (150,000)
    Gain – increase in fair value due to physical change 2,000,000

    Problem 5-3
    Increase in fair value due to price change
    3 – year old animal 6,000,000
    2 – year old animal (purchased on 7/1/2018) 2,500,000
    2 – year old animal (purchased on 12/31/2018) 1,250,000 9,750,000

    Increase in fair value due to physical change


    4 – year old animal 18,000,000
    3 – year old animal (purchased on 7/1/2018) 9,500,000
    3 – year old animal (purchased on 12/31/2018) 4,750,000 30,250,000
    Total Increase in Fair Value during 2019 40,000,000
    Beginning balance of biological assets
    3 – year old animal 88,000,000
    2 – year old animal (purchased on 7/1/2018) 35,000,000
    2 – year old animal (purchased on 12/31/2018) 17,500,000 140,500,000

    Add: Total Increase in fair value during 2018 40,000000


    Ending balance of biological assets, 12/312/019 180,500,000

    To reconcile:
    Ending balance of biological assets, 12/31/2019
    4 – year old animal 110,000
    3 – year old animal (purchased on 7/1/2018) 47,000,000
    3 – year old animal (purchased on 12/31/2018) 23.050,000 180,500,000

    Journal entry
    12/31/2019
    Biological Assets 40,000,000
    Gain – increase in fair value due to price change 9,750,000
    Gain - Increase in fair value due to physical change 30,250,000

    Problem 5 – 4
    a. Increase in Fair Value due to Price Change:
    2.5 – year old animal (purchased on 7/1/2019) 300
    2 – year old animal 5,000
    Newborn animal (born on 7/1/2019) 200 5,500

    Increase in Fair Value due to Physical Change:


    Newborn animal (born on 7/1/2019) 7,000
    3 – year old animal (purchased on 7/1/2019) 900
    3 – year old animal 15,000
    0.5 – year old animal (born on 7/1/2019) 800 23,700
    Total increase in fair value during the year 29,200

    Beginning Balance of Biological Assets, 1/1/2019


    2 – year old animal 100,000
    Add; Purchases during (purchased on 7/1/2019)
    2.5 – year old animal (purchased on 7/1/2019) 10,800
    Add: Total Increase in Fair Value during the year 29,200

    Less: Decrease in Fair Value due to sales


    3 – year old animal
    Selling Price 13,500
    Less: Cost to Sell (1,500)
    Net Selling Price 12,000
    Multiply by 2 animals sold 2 (24,000)
    Ending Balance of Biological Assets,.12/31/2019 116,000

    To Reconcile:
    Ending Balance of Biological Assets. 12/31/2019
    3 – year old animal (purchased on 7/1/2019) 12,000
    3 – year old animal 96,000
    0.5 – year old animal (born on 7/1/2019) 8,000 116,000

    Journal Entries
    7/1/2019
    Biological Assets 10,800
    Cash 10,800

    Biological Assets 7,000


    Gain – Increase in Fair Value due to Physical Change 7,000

    12/31/2019
    Biological Assets 22,200
    Gain – increase in fair value due to price change 5,500
    Gain - Increase in fair value due to physical change 16,700

    Cash 24,000
    Biological Asset 24,000

    You might also like