1.) On November 15, 2015, Bubbles company entered into a P5,200,000 purchase commitment for a supply of a special product on Feb. 15, 2016. On December 31, 2015, the market value of this material had fallen to P5,000.000. On Feb. 15, 2015, the market value of the purchase commitment is P5,100.000. What is the entry on Feb 15, 2016?

1.) On November 15, 2015, Bubbles company entered into a P5,200,000 purchase commitment for a supply of a special product on Feb. 15, 2016. On December 31, 2015, the market value of this material had fallen to P5,000.000. On Feb. 15, 2015, the market value of the purchase commitment is P5,100.000. What is the entry on Feb 15, 2016?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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