Accounting for Agriculture

Forrest-Twigg Holdings is an Australian pastoral company. It recently acquired a beef cattle farm near Horsham, Victoria. The following information relates to the activities of this company:

• The company was created as at 5 November 2021; at that time, 850 baby cattle (calves) and 650 mature cattle were acquired. The cost of acquisition for each unit of baby cattle (calf) and mature cattle is the same as the costs to sell in the table below.
• Calves becomes mature after six months.
• On 24 February 2022, 350 calves were born.
• On 20 June 2022, 600 mature cattle were sold.

The fair value for the baby cattle (calves) and the mature cattle as well as costs to sell is as follows:

2021 2022

Fair value per baby cattle (calf) per unit $30 $35

Fair value per mature cattle per unit $40 $45

Costs to sell or acquisition cost

• Auctioneer's fee $2.5 $3.50

Required

Provide journal entries for the following items according to the requirement of AASB 141Agriculture.

1. Establishment of the cattle farm on 5 November 2021
2. New born calves on 24 February 2022
3. Sale of mature cattle on 20 June 2022
4. The fair value change of the calves and the mature cattle as at 30 June 2022