Culver 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 $2,095,000. 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 enter an account title for the journal entry on December 31, 2019 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2019 enter a debit amount enter a credit amount In 2020, Culver receives the raw materials and pays the required $2,300,000. The raw materials now have a market value of $2,039,000. 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 enter an account title for the journal entry on December 31, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2020
Culver 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 $2,095,000. 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 enter an account title for the journal entry on December 31, 2019 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2019 enter a debit amount enter a credit amount In 2020, Culver receives the raw materials and pays the required $2,300,000. The raw materials now have a market value of $2,039,000. 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.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 enter an account title for the journal entry on December 31, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2020 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Culver 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 $2,095,000.
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.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
Dec. 31, 2019
|
enter an account title for the
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on December 31, 2019
|
enter a debit amount
|
enter a credit amount
|
In 2020, Culver receives the raw materials and pays the required $2,300,000. The raw materials now have a market value of $2,039,000. 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.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
Dec. 31, 2020
|
enter an account title for the journal entry on December 31, 2020
|
enter a debit amount
|
enter a credit amount
|
enter an account title for the journal entry on December 31, 2020
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on December 31, 2020
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title for the journal entry on December 31, 2020
|
enter a debit amount
|
enter a credit amount
|
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