On October 6, 2018, the Elgin Corporation signed a purchase commitment to purchase inventory for $81,000 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 $61,000. The market price of the inventory on December 31, 2018, was $70,000. The company uses a perpetual inventory system.
1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2018
2. Prepare the journal entry to record the purchase on March 21, 2019
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On October 6, 2018, the Elgin Corporation signed a purchase commitment to purchase inventory for $81,000 on or before March 31, 2019. The ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Reynolds Paper Products Corporation follows a strict residual dividend policy. All else equal, which of the following factors would be most likely to lead to an increase in the firm's dividend per share? Select one: a.
Answers (1)
Curly's life insurance co. is trying to sell you an investment policy that will pay you and your heirs $40,000 per year forever. assume the required return on this investment is 6.5 percent. how much will you pay for the policy?
Answers (1)
What are the business reasons for paying dividends and what are the risks of not paying dividends?
Answers (1)
When preparing a direct materials budget, beginning inventory for raw materials should be added to production needs, and desired ending inventory should be subtracted to determine the amount of raw materials to be purchased.
Answers (1)
On December 31, 20X8, the end of its fiscal year, Domco had a foreign currency account payable with a settlement amount greater than its previously recorded carrying amount. Which one of the following would Domco recognize for 20X8? A.
Answers (1)
New Questions in Business
Determine which of the following countries would be classified as 'growth miracles' or 'growth disasters'.
Answers (1)
The valuation of a common stock today primarily depends on:A, the number of shares outstanding and the number of its shareholders. B. its expected future dividends and its discount rate. Ct Wall Street analysts.
Answers (1)
Consider a bp gas station. as a result of an economic recession and decreases in consumer incomes, there will be a:
Answers (1)
You purchased 600 shares of SLG, Inc. stock at a price of $41.20 a share. You then purchased put options on your shares with a strike price of $45.00 and an option premium of $1.10. At expiration, the stock was selling for $48.30 a share.
Answers (1)
Which of the following statement is true? a. The demand for puma shoes is more elastic than the demand for shoes b. The demand for Cheerios is less elastic than the demand for cereal c. Products with many complements have a more elastic demand d.
Answers (1)