Bonita Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $939,400. At December 31, 2025, the raw materials to be purchased have a market value of $891,000. Prepare any necessary December 31, 2025, entry. (List all debit entries before credit entries. 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 0 for the amounts.)
Bonita Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a cost of $939,400. At December 31, 2025, the raw materials to be purchased have a market value of $891,000. Prepare any necessary December 31, 2025, entry. (List all debit entries before credit entries. 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 0 for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
Transcribed Image Text:Bonita Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at a
cost of $939,400. At December 31, 2025, the raw materials to be purchased have a market value of $891,000. Prepare any necessary
December 31, 2025, entry. (List all debit entries before credit entries. 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.)
Date
Dec. 31
Account Titles and Explanation
Debit
Credit
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