Feeder Livestock Inventory--record of the value of feeder pigs, calves, lambs, poultry, and other meat animals being fed with the intention of selling them.
Cash Sales of Market Livestock and Poultry--record of the total amount of cash received during the year from selling feeder livestock and poultry.
If Steve and Chris purchased $1,500 worth of feeder pigs, they record the purchase as follows: (15) May 16 5000 Feeder Livestock
1,500 1000 Cash 1,500 Feeder Livestock
is an expense account, representing the amount of expense that was incurred in purchasing the pigs.
If any of the purchased market livestock is on hand when financial statements are prepared, the balance sheet reports the dollar amount of the purchased livestock in an inventory account, such as Feeder Livestock Inventory Purchased for Resale.
They recorded the purchase in journal entry (15) in the Feeder Livestock account on May 16.
Beginning End of Difference of 20X1 20X1 Accounts Receivable 0 $3,500 $3,500 Feed Inventory Purchased for Use 0 230 230 Feed Inventory Raised for Use 0 2,300 2,300 Crop Inventory Raised for Sale 0 6,000 6,000 Feeder Livestock Inventory Purchased for Resale 0 750 750 Prepaid Expense 0 700 700 Cash Investment in Growing Crops 0 2,500 2,500 Accounts Payable 0 340 340 Taxes Payable 2,160 3,030 870 Interest Payable 0 5,000 5,000 They adjust the income statement for each of these differences.
The amount for Change in Purchased Feeder Livestock Inventory is $700.
Feeder livestock are sold after a period of feeding.
Items purchased with the intent of being sold in essentially the same form (that is, feeder livestock and crops); and
Expenses: Feeder Livestock
, Purchased Feed, Wage Expense, Payroll
31 Adjusting entry to record change in accounts receivable (42) 3,500 3,500 1212 Feeder Livestock
Inventory Purchased for Resale Date Description JE# Debits Credits Balance Beginning Balance 0 Dec.
Change in Purchased Feeder Livestock
Inventory: Adjustment item used to report the correct amount of purchased feeder livestock