Lynne-Melinda Ltd operates a large scale lavender farm supplying companies producing high quality essential oils in the Riverina region. On 30 June 2009 the farm was independently appraised and the lavender farm valued at $500,000. On 31 October 2009 lavender seed flowers that had a fair value less costs to sell of $100,000 were harvested and sold on the same day for the same amount. Picking costs and delivery charges to point-of-sale was $10,000. On 30 June 2010 the farm was valued at $550,000.
What journal entry is required on 31 October 2009 to recognise the harvest of lavender seeds?
E) None of the given answers.

Question

Quizplus · Accepted Answer

The Answer of Lynne-Melinda Ltd operates a large scale lavender farm supplying companies producing high quality essential oils in the Riverina region. On 30 June 2009 the farm was independently appraised and the lavender farm valued at $500,000. On 31 October 2009 lavender seed flowers that had a fair value less costs to sell of $100,000 were harvested and sold on the same day for the same amount. Picking costs and delivery charges to point-of-sale was $10,000. On 30 June 2010 the farm was valued at $550,000.
What journal entry is required on 31 October 2009 to recognise the harvest of lavender seeds?
E) None of the given answers.

Lynne-Melinda Ltd Operates a Large Scale Lavender Farm Supplying Companies