Question
Sally's Dairy began operations on June 1, 2020, with the purchase of 300 milking cows for $300,000. It has completed the first year of operations
Sally's Dairy began operations on June 1, 2020, with the purchase of 300 milking cows for $300,000. It has completed the first year of operations and has the following information for its milking cows at the end of its fiscal year, May 31, 2021:
Milking Cows
Change in fair value due to growth and price changes$27,000
Increase in fair value due to harvest12,800
Milk harvested during the fiscal year to May 31, 2021 (at net realizable value) 225,500
Required:
the journal entries for which information is provided for Sally's bio agricultural assets (milking cows) for the fiscal year.
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