Question
Pastorall Ltd is an Australian pastoral company. It recently acquired a beef cattle farm near Gunnedah, New South Wales. The following assumptions apply: The company
Pastorall Ltd is an Australian pastoral company. It recently acquired a beef cattle farm near Gunnedah, New South Wales. The following assumptions apply:
The company was created as at 1 November 2022; at that time, 1100 baby cattle (calves) and 700 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 28 February 2023, 500 calves were born.
On 30 May 2023, 900 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:
Fair value per baby cattle (calf) per unit 2022- $26 2023-$30
Fair value per mature cattle per unit 2022-$36 2023-$40
Costs to sell or acquisition cost
Auctioneers fee 2022-$1.5 2023-2.0
Required
Provide journal entries for the following items according to the requirement of IAS 41 Agriculture:
Establishment of the cattle farm on 1 November 2022
New born calves on 28 February 2023
Sale of mature cattle on 30 May 2023
The fair value change of the calves and the mature cattle as at 30 June 2023
that is all the data
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