Homework Answers
| Amount of purchase commitment | 350000 |
| Less: Market price of the inventory on December 31, 2018 | 330000 |
| Loss on purchase commitment | 20000 |
| Option B $20,000 is correct |
Add Answer to:
View previous attempt On July 10. 2018. Johnson Corporation signed a purchase commitment to purchase inventory...
On July 10, 2018, Johnson Corporation signed a purchase commitment to purchase inventory for $300,000 on...
On July 10, 2018, Johnson Corporation signed a purchase commitment to purchase inventory for $300,000 on or before February 15, 2019. The company's fiscal year-end is December 31. The contract was exercised on February 1, 2019, and the inventory was purchased for cash at the contract price. On the purchase date of February 1, the market price of the inventory was $311,000. The market price of the inventory on December 31, 2018, was $277,000. The company uses a perpetual inventory...
On October 6, 2018, the Elgin Corporation signed a purchase commitment to purchase inventory for $66,000...
On October 6, 2018, the Elgin Corporation signed a purchase commitment to purchase inventory for $66,000 on or before March 31, 2019. The company's fiscal year-end is December 31. The contract was exercised on March 21, 2019, and the inventory was purchased for cash at the contract price. On the purchase date of March 21, the market price of the inventory was $56,000. The market price of the inventory on December 31, 2018, was $60,000. The company uses a perpetual...
In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purc...
In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 25,000 units of inventory at $9 per unit by December 15, 2018. The second commitment requires the company to purchase 35,000 units of inventory at $10 per unit by March 15, 2019. Brunswick’s fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. Required: 1. Prepare the journal entry to record the December...
On October 6, 2021, the Elgin Corporation signed a purchase commitment to purchase inventory for $81,000...
On October 6, 2021, the Elgin Corporation signed a purchase commitment to purchase inventory for $81,000 on or before March 31, 2022. The company's fiscal year-end is December 31. The contract was exercised on March 21, 2022, and the inventory was purchased for cash at the contract price. On the purchase date of March 21, the market price of the inventory was $61,000. The market price of the inventory on December 31, 2021, was $70,00o. The company uses a perpetual...
Problem 9-18 Purchase commitments (Appendix] In November 2018, the Brunswick Company signed two purchase commitments. T...
Problem 9-18 Purchase commitments (Appendix] In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 17,000 units of inventory at $14 per unit by December 15, 2018. The second commitment requires the company to purchase 27,000 units of inventory at $15 per unit by March 15, 2019. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. Required: 1. Prepare the journal...
In March 2021, the Phillips Tool Company signed two purchase commitments. The first commitment requires Phillips...
In March 2021, the Phillips Tool Company signed two purchase commitments. The first commitment requires Phillips to purchase inventory for $116,000 by June 15, 2021. The second commitment requires the company to purchase inventory for $166,000 by August 20, 2021. The company's fiscal year-end is June 30. Phillips uses a periodic inventory system. The first commitment is exercised on June 15, 2021, when the market price of the inventory purchased was $93,000. The second commitment was exercised on August 20,...
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...
Exercise 16-11 On January 1, 2018, Titania Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company’s $10 par common stock at $25 per share. The option...
Exercise 16-11 On January 1, 2018, Titania Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company’s $10 par common stock at $25 per share. The options were exercisable within a 5-year period beginning January 1, 2020, by grantees still in the employ of the company, and expiring December 31, 2024. The service period for this award is 2 years. Assume that the fair value option-pricing model determines total compensation expense to...
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"...
2057283 nada ng Weekly View Policies Current Attempt in Progress Blossom Company has a July 31...
2057283 nada ng Weekly View Policies Current Attempt in Progress Blossom Company has a July 31 fiscal year end and uses a perpetual Inventory system. The records of Blossom Company show the following data lons 2021 2020 2019 Support Income statement: Sales Cost of goods sold Operating expenses Balance sheet: Merchandise inventory $340,000 233,000 79,000 $325,000 230,000 79,000 $360,000 276,000 79.000 56,000 46,000 35,000 After its July 31, 2021. year end, Blossom discovered two errors 1. At July 31, 2020,...
On October 6, 2021, the Elgin Corporation signed a purchase commitment to purchase inventory for $81,000 on or before March 31, 2022. The company's fiscal year-end is December 31. The contract was exercised on March 21, 2022, and the inventory was purchased for cash at the contract price. On the purchase date of March 21, the market price of the inventory was $61,000. The market price of the inventory on December 31, 2021, was $70,00o. The company uses a perpetual...
Problem 9-18 Purchase commitments (Appendix] In November 2018, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 17,000 units of inventory at $14 per unit by December 15, 2018. The second commitment requires the company to purchase 27,000 units of inventory at $15 per unit by March 15, 2019. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. Required: 1. Prepare the journal...
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"...
2057283 nada ng Weekly View Policies Current Attempt in Progress Blossom Company has a July 31 fiscal year end and uses a perpetual Inventory system. The records of Blossom Company show the following data lons 2021 2020 2019 Support Income statement: Sales Cost of goods sold Operating expenses Balance sheet: Merchandise inventory $340,000 233,000 79,000 $325,000 230,000 79,000 $360,000 276,000 79.000 56,000 46,000 35,000 After its July 31, 2021. year end, Blossom discovered two errors 1. At July 31, 2020,...
Most questions answered within 3 hours.
-
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 29 minutes ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 2 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 4 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 4 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 4 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 4 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 5 hours ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 5 hours ago