Problem 8 9 Swifty Farms Ltd operates dairy farms The following are selected transactions that occurred during the fiscal years ending December 31, 2020 and 2021, for one dairy cow and its calf (Use Supplies Expense for all farm expenses) 1 A calf was born in March 2020 Its fair value less costs to sell at date of birth was $90 2 Milk produced by the dairy cow for the year sold for $1,070, all for cash No milk is kept on the farm 3 General farm expenses of $220 were incurred in 2020, all paid in cash 4 Cost to feed the calf was $170 for 2020 and $50 for 2021, all paid in cash 5 The calf was sent to pasture When it returned to the herd on December 31, 2020, it had increased in value to $540 net of any selling costs 6 The calf was sold for $770 cash on April 1, 2021, net of auction fees and delivery costs of $70 1 Is the calf a biological asset Is the milk a biological asset 2 Prepare the entries for Riverdale Farms Ltd for the transactions listed assuming the company follows IFRS (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) 3 Prepare the entries for Swifty Farms Ltd for the transactions listed assuming the company follows ASPE and chooses to expense all costs related to the upkeep of the calf (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts )

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Problem 8-9 Swifty Farms Ltd. operates dairy farms. The following are selected transactions that occurred during the fiscal years ending December 31, 2020 and 2021,

Problem 8-9

Swifty Farms Ltd. operates dairy farms. The following are selected transactions that occurred during the fiscal years ending December 31, 2020 and 2021, for one dairy cow and its calf. (Use Supplies Expense for all farm expenses)

1.		A calf was born in March 2020. Its fair value less costs to sell at date of birth was $90.
2.		Milk produced by the dairy cow for the year sold for $1,070, all for cash. No milk is kept on the farm.
3.		General farm expenses of $220 were incurred in 2020, all paid in cash.
4.		Cost to feed the calf was $170 for 2020 and $50 for 2021, all paid in cash.
5.		The calf was sent to pasture. When it returned to the herd on December 31, 2020, it had increased in value to $540 net of any selling costs.
6.		The calf was sold for $770 cash on April 1, 2021, net of auction fees and delivery costs of $70.

1.Is the calf a biological asset? Is the milk a biological asset? 2.Prepare the entries for Riverdale Farms Ltd. for the transactions listed assuming the company follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 3.Prepare the entries for Swifty Farms Ltd. for the transactions listed assuming the company follows ASPE and chooses to expense all costs related to the upkeep of the calf. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)