Sunland Dairy began operations on April 1, 2020, with purchase of 200 milking cows for...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Sunland Dairy began operations on April 1, 2020, with purchase of 200 milking cows for $6,860,000. It has completed the first month of operations and has the following information for its milking cows at the end of April 2020.
Milking cows
Change in fair value due to growth and price changes
$(192,000)
Decrease in fair value due to harvest
(12,800)
Milk harvested during April 2020 (at net realizable value)
80,000
a. Prepare the journal entries for Sunland's biological asset (milking cows) for the month of April 2020.
b. Prepare the journal entry for the milk harvested by Sunland during April 2020.
c. Sunland sells the milk harvested in April on the local milk exchange and receives $80,000. Prepare the summary journal entry to record the sale of the milk for cash.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
