The Company has the following animals on January 1, 2020:

• Twenty 2-year-olds
• Thirty 1-year-olds

During the year, the Company made the following transactions:

1. On January 1, 2020, the Company purchased the following for P60,000:

• Five 0.5-year-olds
• Ten newborns

1. On June 30, 2020, 10 animals were born.
2. On June 30, 2020, the Company purchased the following for P40,000:

• Two 0.5-year-olds
• Eight newborns

1. On December 31, 2020, the Company sold the following at FV - CTS:

• Ten 3-year-olds
• Five 0.5-year-olds

The fair values less cost to sell on different dates are as follows:

January 1, 2020 June 30, 2020 December 31, 2020

Age FV-CTS Age FV-CTS Age FV-CTS

2-year old 20,000 2-year old 21,000 3-year old 32,000

1-year old 13,000 1-year old 13,500 2-year old 22,000

0.5-year old 6,500 0.5-year old 7,000 1.5-year old 18,000

Newborn 2,500 Newborn 3,200 1-year old 14,000

0.5-year old 8,000

Newborn 3,500

Required:

1. Journalize the above transactions plus the changes in FV-CTS at year-end.
2. Compute for the total change in FV-CTS due to price change.
3. Compute for the total change in FV-CTS due to physical change.
4. Compute for the year-end balance of the biological assets.
5. Prepare reconciliation of the year-end balance of the biological assets.