On December 31, 2019, Naysayer Company has outstanding purchase commitments for 10,000 gallons at P200 per gallon of raw materials to be used in the manufacturing process. Required : Prepare journal entry under each of the following assumptions: a. The market price on December 31, 2019 is P210. b. It is expected that the market price will decline to P170 in early January 2020. c. The market price on December 31 2019 is P170. d. The market price on December 31, 2019 is P170. On January 31, 2020 when the 10,000 gallon shipment is received, the market price is P150. e. The market price on December 31, 2019 is P170. On January 31, 2020 when the 10,000 gallon shipment is received, the market price is P210.

On December 31, 2019, Naysayer Company has outstanding purchase commitments for 10,000 gallons at P200 per gallon of raw materials to be used in the manufacturing process. Required : Prepare journal entry under each of the following assumptions: a. The market price on December 31, 2019 is P210. b. It is expected that the market price will decline to P170 in early January 2020. c. The market price on December 31 2019 is P170. d. The market price on December 31, 2019 is P170. On January 31, 2020 when the 10,000 gallon shipment is received, the market price is P150. e. The market price on December 31, 2019 is P170. On January 31, 2020 when the 10,000 gallon shipment is received, the market price is P210.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Do it nicely. Upvote guaranteed.
Cullumber Company sells goods to Riverbed Company during 2020. It offers Riverbed the following rebates based on total sales to Riverbed. If total sales to Riverbed are 9,000 units, it will grant arebate of 3%. If it sells up to 21.100 units, it will grant a rebate of 5%. If it sells up to 32,200 units, it will grant a rebate of 6%, In the first quarter of the year. Culumber sells 9,900 units to Riverbed at a sales price of $99,000. Cullumber, based on past experience, has sold over 36,200 units to Riverbed, and these sales normally take place in the third quarter of the year. What amount of revenue should Cullumber report for the sale of the 9,900 units in the first quarter of the year. Reverue eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Arawer Savefor Later
UA Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues andP500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixedrent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of netsales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000.In its December 31, 2019 statement of financial position, UA should report accrued liabilities of:a. P51,500 c. P53,900b. P56,800 d. P56,300
Prepare journal entry for delivery of equipment. A leading vegetable organic farm named Fresh organics wants to purchase a harvest machine from Murray where the contract stipulated to pay P150,000 as advance payment on Dec 1 2020. Harvester cost of P110,000 delivered on Dec 30, 2020.
during november 2020 marvin's pre owned vechiles lts sells high end car for 120,000. the cost of the vehicle was 55 000, resulting in a gross profit of $65,000 The $120,000 sale price is to be paid four equal instalment on Dec. 31 in each of the years 2021 to 2024. Marvin's pre owned vehicles ltd. has a december 31 year end. Requirements. A. The amount of the reserve that can be deducted B. The net business income
The Runner Antique Mall expects to make purchases in the first quarter of 2021 as follows: January $85,500 February 108,000 March 76,500 Purchases in December 2020 are expected to be $82,600. The company expects that 50 percent of a month's purchases will be paid in the month of purchase and 50 percent will be paid in the following month. Estimate cash disbursements related to purchases for each month of the first quarter of 2021.
ABC Company sold 10 units of goods with a unit list price of P2,000 on January 1, 2020. Given that the trade discount is 5% and the cash discount is 10%, and that the cash discount period is 10 days and the credit period is 30 days, if the customer settles the debt on January 11, 2020, what is the actual payments he needs to pay
56 In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300 per product). The merchandise is to be delivered to M&H over the next 6 months. After 60 merchandises were delivered, the contract is modified and Commonlo promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Commonlo delivered an additional 90 products. All sales are cash on delivery. Assume that the additional term is a prospective modification to the original contract. How much revenue will be recognized on the contract for the year 2021?
Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $30,000 and the standalone selling price for the annual maintenance contract is $400. During October 2020, Value Dealership Inc. sold 30 vehicles for $30,250 per vehicle, each with a free annual maintenance contract. When answering the following questions: Round each allocated transaction price to the nearest dollar. If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). a. Ignoring the cost entries, record the journal entry in October 2020 for Value Dealership’s sale of vehicles with the associated maintenance contracts to customers.…
Ramos Inc. must determine on December 31, 2020, year-end accruals for advertising and rent expense. A P50,000 advertising bill was received January 7, 2021, comprising cost of P35,000 for advertisement in December 2020 issues and P15,000 for advertisements in January 2021 issues of the newspaper. A store lease, effective December 16, 2019, calls for fixed rent of P120,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P6,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2020 were P9,000,000. Question: How much are the accrued liabilities in the December 31, 2020 statement of financial position?
ABC SAOG has entered a contract to supply a machinery on 1st December 2019 for OMR 1000,000 along with maintenance service for a period of 2 years with no additional charge. The payment terms were as follows: OMR 1000,000 if paid by 31st December 2019; OMR 1020,000 if paid by 31st January 2020; OMR 1040,000 if paid by 29th February 2020. It is highly probable that the customer will make payment in the month of January 2020. The stand-alone selling price for machinery was OMR 900,000 and the consideration for two years maintenance service is expected to be RO 300,000. What is the amount of obligation for maintenance service for two years? O a. OMR 250,000. Ob.OMR 100,000. Oc. OMR 750,000. O d. OMR 255,000.
Wiam water supply services orders a water pump and expects the delivery in 30 days. The order was placed in 1st January, 2019 with an estimated cost of RO 8000. The water pump was delivered on time by the supplier on 30th January, 2019 with a voucher of RO 8,100. The voucher was approved on 6th February 2019 and the payment was settled on 7th February, 2019. Based on the above case, answer the following six questions (Questions 45-50) Question 45 Question text In the above case the disbursement is recorded on: a. 1st July, 2019 b. 30th January, 2019 c. 7th February, 2019 d. 6th February, 2019 Question 46 Question text Suppose the order made on 1st January is cancelled later on 10th January, which among the following will be the correct accounting treatment? a. A fresh encumbrance is made again on 10th January b. There will be no effect on the encumbrance control account c. The encumbrance made earlier is reversed. d. The available fund balance…