Question

Grouper Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major...

Grouper Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major supplier to purchase raw materials at an annual cost of $2,600,000. At December 31, 2019, the raw materials to be purchased in 2020 have a market price of $2,540,000.

Prepare any December 31, 2019 entry that is needed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

In 2020, Grouper receives the raw materials and pays the required $2,600,000. The raw materials now have a market value of $2,492,000. Prepare the entry to record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Hey Dear,

Hope you are also doing well.

I have tried to give best possible answer. If you have any doubts, please mention in comment section. I'll definitely respond back as early possible.

And please excuse my bad handwriting.

Date AcCount Title Debit Cedit 31- Дес- 2019 Less on Purehue commitments 60000 Purchase Cammitments liabity 6000D (Bing loss

Thanks Dear, Have a Wonderful Day ?

Note: How about to hit the Thumb's Up icon..?

Add a comment
Know the answer?
Add Answer to:
Grouper Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Brief Exercise 8-10 Sheffield Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment...

    Brief Exercise 8-10 Sheffield Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major supplier to purchase raw materials at an annual cost of $2,300,000. At December 31, 2019, the raw materials to be purchased in 2020 have a market price of $2,250,000. Prepare any December 31, 2019 entry that is needed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"...

  • Brief Exercise 8-10 Bridgeport Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitme...

    Brief Exercise 8-10 Bridgeport Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major supplier to purchase raw materials at an annual cost of $1,500,000. At December 31, 2019, the raw materials to be purchased in 2020 have a market price of $1,357,000. Prepare any December 31, 2019 entry that is needed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"...

  • Windsor Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials...

    Windsor Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $981,000. At December 31, 2021, the raw materials to be purchased have a market value of $932,500. Prepare any necessary December 31, 2021 entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles...

  • Brief Exercise 9-08 Sunland Company signed a long-term noncancelable purchase commitment with a major supplier to...

    Brief Exercise 9-08 Sunland Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $919,600. At December 31, 2020, the raw materials to be purchased have a market value of $869,100. In 2021, Sunland paid $919,600 to obtain the raw materials which were worth $869,100. Prepare the entry to record the purchase. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry...

  • Brief Exercise 9-8 Tamarisk Company signed a long-term noncancelable purchase commitment with a major supplier to...

    Brief Exercise 9-8 Tamarisk Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2018 at a cost of $1,001,000. At December 31, 2017, the raw materials to be purchased have a market value of $955,300. In 2018, Tamarisk paid $1,001,000 to obtain the raw materials which were worth $955,300. Prepare the entry to record the purchase. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry...

  • signment TOP CHE INTER VERSION MACK NEXT Brief Exercise 9-08 Waterway Company signed a long-term noncancelable...

    signment TOP CHE INTER VERSION MACK NEXT Brief Exercise 9-08 Waterway Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $983,500. At December 31, 2020, the raw materials to be purchased have a market value of $929,100. In 2021. Waterww paid $93.500 to obtain the raw materials which were worth 5929,100. Prepare the entry to record the purchase. (Credit account ties are automatically indented when amount is entered....

  • Grouper Company, a public company following IFRS purchased $130,000, 4% five-year bonds of IAA Corporation on...

    Grouper Company, a public company following IFRS purchased $130,000, 4% five-year bonds of IAA Corporation on January 1, 2021. Interest is payable on July 1 and January 1. The bond is selling at a $135,995 resulting in a bond premium of $5,995. The effective interest rate is 3%. At the year-end of December 31, the fair value of the investment was $131,800. Prepare the appropriate journal entries for the year ending December 31, 2021 assuming that Grouper Company uses FV-OCI....

  • Buffalo Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu...

    Buffalo Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan. 1, 2020 Economic life of leased equipment Annual rental payments starting Jan. 1, 2020 Option to purchase at the end of the term Depreciation method Residual value Buffalo's incremental borrowing rate January 1, 2020 5 years $240,000 7 years $40,850 none Straight-line none 6% Using (1) factor...

  • Question 2 View Policies Current Attempt in Progress Indigo Corp., which uses IFRS, signs non-renewable, non-cancellable...

    Question 2 View Policies Current Attempt in Progress Indigo Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement. Inception date Lease term Fair value of equipment Jan 1, 2020 Economic life of leased equipment Annual rental payments starting Jan 1, 2020 Option to purchase at the end of the term Depreciation method Residual value Indigo's incremental borrowing rate January 1, 2020 5 years $190,000 7 years...

  • At December 31, 2020, Nash Company has outstanding noncancelable purchase commitments for 38,500 gallons, at $4.38...

    At December 31, 2020, Nash Company has outstanding noncancelable purchase commitments for 38,500 gallons, at $4.38 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Assuming that the market price as of December 31, 2020, is $3.94, record the journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry"...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT