Reference no: EM132757792

Elliott Ltd is an Australian pastoral company. It recently acquired a beef cattle farm near Dubbo, New South Wales. The following assumptions apply:

1. The company was created as at 1 November 2023; at that time, 800 baby cattle (calves) and 400 mature cattle were acquired.
2. The cost of acquisition for each unit of baby cattle (calf) and mature cattle is the same as the costs to sell in the table below.Calves becomes mature after six months.
3. On 28 February 2024, 200 calves were born.
4. On 30 May 2024, 500 mature cattle were sold.

The fair value for the baby cattle (calves) and the mature cattle as well as costs to sell is as follows:

                                                                   2021                       2022
Fair value per baby cattle (calf) per unit               $28                  $32
Fair value per mature cattle per unit                      $38                   $42
Costs to sell or acquisition cost

Auctioneer's fee$                                                1.5                     $2.0

Required

Problem 1: Provide journal entries for the following items according to the requirement of IAS 41 Agriculture:

1. Establishment of the cattle farm on 1 November 2023
2. New born calves on 28 February 2024
3. Sale of mature cattle on 30 May 2024
4. The fair value change of the calves and the mature cattle as at 30 June 2024