Reference no: EM132667877
Question - Micks Mango Farm Limited
The mangos were picked on May 30th, 2019. The fair value less costs to sell the fruit immediately after picking and packing amounted to $250,000.
On 22nd June 2019, 80% of the mangos are sold for a sales price of $205,000. Picking and packing costs amounted to $8,000. The remaining 20% of the picked fruit are recognized as inventories at the end of the reporting period, this being June 30, 2019.
During the reporting period ending June 30, 2019, employee expenses, fertilizers, lease expenses and other expenses amounted to $11,500.
On July 1, 2018 the mango orchard had a value of $90,000 however at June 30, 2019 the value had increased to $113,000.
1. Provide the journal to record the harvesting of mangos.
2. Provide the journal entries to record the sale of mangos and the adjustment to inventory.
3. Provide the journal to record the change in the biological asset.