Reference no: EM132573572

Cattle Ltd has a large cattle farm in a remote suburb of New South Wales. Cattle Ltd measures its biological assets in accordance with IAS41. Cattle Ltd received the following grants from federal and state governments:

Grant A (from Federal Govt.) $70,000

Grant B (from State Govt.) $30,000

• Federal Government announced and notified about Grant A to Cattle Ltd on 15 February 2019. There is no condition attached to this grant. The grant was received exactly one month after the date of grant notification.

• On 20 April 2019, the NSW State Government notified Grant B to Cattle company. Grant B was received on 15 May 2019. Grant B states that the company must continue to employ local people from 1 July 2019 to 30 June 2021 and the grant amount needs to be distributed equally over the financial periods. If the company does not fulfill this grant condition from 1 July 2019 to 30 June 2021, then the company needs to repay Grant B proportionally (i.e., If the company does not comply with the condition for 6 months out of 24 months, then it needs to repay 6 months equivalent grants amount: $7,500). Cattle Ltd fully complied with the grant conditions.

REQUIRED

Question 1: Provide the journal entries for Cattle Ltd for the year ended 30 June 2019 and 30 June 2020.