Kalbarri Ltd began operations on 1 January 2008 by purchasing 3000 orange tree saplings at a cost

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Kalbarri Ltd began operations on 1 January 2008 by purchasing 3000 orange tree saplings at a cost of $4 per sapling. Delivery charges were $500 and it cost $1200 to plant the trees on Kalbarri Lad's land, which 2 years earlier cost $60 000. During 2008, the saplings produced fruit that was used to generate 1000 seedlings. The only other expense during the year was herbicidal spraying, which cost $400. At the end of the year the saplings had a market value of $4 per sapling and the seedlings $1 per seedling. Show all journal entries for the calendar year 2008 and the calculation of profit for the year.

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