Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me i will give good rating Thumbs up DEF Ltd is an Australian agricultural company. It recently acquired the GHI Ltd cattle station

Please help me i will give good rating Thumbs up

image text in transcribed

DEF Ltd is an Australian agricultural company. It recently acquired the GHI Ltd cattle station near Longreach, Queensland, Australia. The following assumptions apply: 1. The company was created on 31 October 20X2; at that time, 980 baby cattle (calves) and 520 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. 2. calves becomes mature after six months. 3. on 31 March 20X3, 280 calves were borne. 4. on 30 May 20X3, 825 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: Details 20X2 (S) 20X3 (S) Fair value per baby cattle (calf) per unit 14 17 Fair value per mature cattle per unit 21 24 Costs to sell or acquisition cost - Auctioneer's fee 1.6 1.8 Required: Provide journal entries for the following items according to the requirements of IAS 41 Agriculture: a. Establishment of the cattle farm on 31 October 20X2. (2 marks) b. New born calves on 31 March 20X3. (2 marks) c. Sale of mature cattle on 30 May 20X3 (2 marks) d. The fair value change of the calves and the mature cattle as at 30 June 20X3. (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Terminology

Authors: Michael P Griffin

1st Edition

1423229371, 9781423229377

More Books

Students also viewed these Accounting questions