Jack Russell is a dog farm, breeding and maturing the dogs for future selling as the main business. The following assumptions apply:

–       Auctioneer’s fee

$15

$20

Required

Provide journal entries for the following items according to the requirement of IAS 41 Agriculture.

a.     Establishment of the dog farm on 1 January 2016 (2 Marks).

b.    New born puppies on 1 August 2016 (2 Marks)

c.     Sale of mature dogs on 1 February 2017 (2 Marks)

d.    The fair value of the puppies and the mature dogs as at 31 December 2016 and 31 December 2017 respectively (5 Marks)