Herald Company has different kinds of farm animals on January 1, 2020. During the year, several acquisitions occurred related to these farm animals. A detailed

Question

82 users unlocked this solution today!

Herald Company has different kinds of farm animals on January 1, 2020. During the year, several acquisitions occurred related to these farm animals. A detailed summary of these transactions is as follows:

Carrying value on January 1, 2020

Qty Amount

2-year old Hogs 20 P180,000

2.5-year old Hogs 10 190,000

1-year old Horses 15 650,000

3-year old Cattle 10 950,000

Purchases on June 30, 2020

1.5-year-old Hogs 15 P230,000

Fair value less cost to sell on December 31, 2020

2-year old Hogs 20 P190,500

2.5-year old Hogs 10 201,000

1-year old Horses 15 675,000

3-year old Cattle 10 925,000

1.5 year old Hogs 15 240,000

Fair value less cost to sell on December 31, 2020

3-year old Hogs 20 P202,500

3.5-year old Hogs 10 204,000

2-year old Horses 15 670,000

-year old Cattle 10 935,000

2-year old Hogs 15 246,500

There were no animals sold or born during the year.

Requirements:

1. Compute the biological asset at the end of December 31, 2020.

2. Compute the unrealized holding gains or losses attributable to price changes and physical change.

3. Necessary entries to record the above transactions.