Accounting for biological assets based on IAS 41

Question1 Shoreham Vineyard Ltd grows grapes, which are sold to local wine producers. At 1 January 2006 Shoreham Vineyard Ltd's grapes had a net market value of $150,000. During the year ended 31 December 2006 $10,000 was spent on fertilisers. Grapes with a market value of $80,000 were harvested at a cost of $12,000. The grapes would have to be packaged at a cost of $4,000 before they could be sold. At 31 December 2006 the net market value of Shoreham Vineyard Ltd's grape vines was $155, 000. Required: Prepare journal entries to account for the agricultural assets cember 2006