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On 1 January 2021, Fresh Farm Berhad purchased 1,000 cattle at a cost of $2.2 million. The company's financial year end is 31 December. It
On 1 January 2021, Fresh Farm Berhad purchased 1,000 cattle at a cost of \$2.2 million. The company's financial year end is 31 December. It is estimated that the fair value of cattle in the market on 31 December 2021 is $3 million. The company estimates that the commission to dealers is about 0.1% of the fair value if they decide to sell the cattle. The company will also incur a transportation cost of $2,000 to bring the cattle to the market. REQUIRED: (i) List the journal entries to record the above transactions in the financial statements of Fresh Farm Berhad as at 31 December 2021(Show all workings). (7 marks) (ii) Account for the extract financial statements of Fresh Farm Berhad as at 31 December 2021
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