07-28-2010, 12:03 AM
Thanks noman for your contributions. Please follow this scenario.
I have accumulated the cost of maize up to March when they are ready for harvest. The accumulated costs at this point are seeds USD 3000, fertilizer USD 1000, laborers USD 1000. At March the maize had a market value of USD 6000. Transportation to market costs USD 100 and agent costs at the market are USD 50. The harvested maize will need to be moisturized for three months before they can be sold. The fair value after three months is expected to be the same i.e. USD 6000. After moisturization, the maize will be packed at a cost of USD 200 before they can be sold in the market. I will appreciate if double entries for these transactions and ending balance sheet and income statement will be demonstrated.
Regards
I have accumulated the cost of maize up to March when they are ready for harvest. The accumulated costs at this point are seeds USD 3000, fertilizer USD 1000, laborers USD 1000. At March the maize had a market value of USD 6000. Transportation to market costs USD 100 and agent costs at the market are USD 50. The harvested maize will need to be moisturized for three months before they can be sold. The fair value after three months is expected to be the same i.e. USD 6000. After moisturization, the maize will be packed at a cost of USD 200 before they can be sold in the market. I will appreciate if double entries for these transactions and ending balance sheet and income statement will be demonstrated.
Regards
