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2014 Vol 1 CH 9 Answers
2014 Vol 1 CH 9 Answers
CHAPTER 9
BIOLOGICAL ASSETS
9-1.
(ABC Farms)
(a)
Carrying value of Biological Assets, 12/31/12
Cost of biological assets purchased during 2013
Fair valuation loss on initial recognition
Change in fair value due to biological transformation and
price fluctuations
Decrease in fair value due to harvest
Biological Assets, 12/31/13
(b)
9-2.
(Ranchero Corporation)
(a) Balance of Biological Assets at December 31, 2012
3 years old = 2,000 x P44,000
P88,000,000
2 years old = 1,500 x P35,000
52,500,000
Increase in fair value
2,000 x (P55,000 P44,000)
P22,000,000
1,500 x (P47,000 P35,000)
18,000,000
Balance, December 31, 2013 (at FV less cost to sell)
P2,800,000
3,200,000
( 150,000)
2,000,000
(1,000,000)
P6,850,000
P 150,000
P2,000,000
P140,500,000
40,000,000
P180,500,000
P6,000,000
3,750,000
P9,750,000
P16,000,000
14,250,000
P30,250,000
P110,000,000
70,500,000
P180,500,000
Price Change
2 year-old animals on Jan. 1
10 x (P10,500 P10,000)
2.5 year-old animal on July 1 1 x (P11,100 P10,800)
Animal born on July 1
1 x (P7,200 P7,000)
Change in FV less CTS due to Price Change
88
P5,000
300
200
P5,500
Physical Change
3 year-old animals on 12/31 10 x (P12,000 P10,500)
3 year old animal on 12/31 1 x (P12,000 P11,100)
Born on July 1 (upon birth)
On December 31 P8,000 P7,200
Change in FV less CTS due to Physical Change
(b) Entries for the Year
2013
July 1 Biological Assets
Cash
Purchased one animal.
P15,000
900
7,000
800
P23,700
10,800
1 Biological Assets
7,000
Increase in FV less CTS due to Physical Change
10,800
7,000
24,000
(d)
24,000
P100,000
10,800
5,500
23,700
(24,000)
P116,000
MC1
MC2
MC3
MC4
MC5
MC6
MC7
B
D
C
D
D
B
B
MC15
MC16
MC17
MC18
C
C
C
A
MULTIPLE
MC8
MC9
MC10
MC11
MC12
MC13
MC14
CHOICE
B
A
B
B
B
C
A
89
D
B
B
A
C
A
90