Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. agri purchased a vineyard in april 2019 for $1,250

Agri purchased a vineyard in April 2019 for $1,250,000. The purchase was risky because the...

90.2K

Verified Solution

Question

Accounting

image
Agri purchased a vineyard in April 2019 for $1,250,000. The purchase was risky because the growing season was coming to an end, the grapes must be harvested in the next several weeks and Agri has limited experience in carrying off a grape harvest. At the end of the first quarter of operations Agri is felling pretty good about his early results. The first harvest was a success; 500 bushels of grapes were harvested with a value of $50,000 and given the strong yield from area vineyards during this season, the net realisable value of Agri's vineyard has increased by $25,000 at the end of the quarter. After storing the grapes for a short period of time, agri was able to sell the entire harvest for $60,000. Required 1. Prepare journal entries for the vineyard's biological asset (grape vines) for the first quarter of operations (the beginning carrying and net realisable value is $1,250,000). 2. Prepare the journal entry for the grapes harvested during the first quarter 3. Prepare the journal entry to record the sale of the grapes harvested in the first quarter 4. Determine the total effect on income for the quarter related to the vineyard's biological asset asset and agricultural produce

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students