Reference no: EM133018314

Question - In 2010, Stone Beauty Limited established and commenced the operation of a Flower business in Suva. The trees were planted in 2017 and began producing saleable flowers in 2019. In 2020, 75% of the flowers were sold immediately, as they were picked, for a sale price of $145,000. Selling costs are assumed to be immaterial. The remaining 25% of the chosen flowers are recognized as inventories at the end of the reporting period. The fair value less the estimated point of sale costs of the flower trees on 30th June 2019 (the end of the previous reporting period) was $85,000, and on 30th June 2020, $100,000. During the reporting period ending 30th June 2020, employee expenses, fertilizers, lease expense, and other expenses amount to $30,000. The fair value less estimated point of sale costs of the flowers immediately after picking and packing to $50,000. Picking and packaging cost amount to $15,000.

Required - Prepare the journal entries to record:

a) The cost incurred to maintain the biological assets;

b) The harvesting of the agricultural produce from the biological asset;

c) The sale of the agricultural produce and

d) The change in fair values for the biological assets between ends of the two reporting periods.