On November 15, 2021, Diamond Company entered into a commitment to purchase 10,000 ounces of gold on February 15, 2022 at a price of P310 per ounce. On December 31, 2021, the market price of gold is P270 per ounce. On February 15, 2022, the price of gold is P300 per ounce. 1. What amount should be recognized as loss on purchaBe commitment on December 31, 2021? a. 400,000 b. 100,000 c. 300,000 d. 2 What amount should be recognized as gain on purchase commitment ón February 15, 2022? a 400,000 b. 300,000 100,000 P. C. 3. What amount should be recorded as purchases on February 15, 2022? a 3,000,000 b. 3,100,000 c. 2,700,000 d. 3,500,000
On November 15, 2021, Diamond Company entered into a commitment to purchase 10,000 ounces of gold on February 15, 2022 at a price of P310 per ounce. On December 31, 2021, the market price of gold is P270 per ounce. On February 15, 2022, the price of gold is P300 per ounce. 1. What amount should be recognized as loss on purchaBe commitment on December 31, 2021? a. 400,000 b. 100,000 c. 300,000 d. 2 What amount should be recognized as gain on purchase commitment ón February 15, 2022? a 400,000 b. 300,000 100,000 P. C. 3. What amount should be recorded as purchases on February 15, 2022? a 3,000,000 b. 3,100,000 c. 2,700,000 d. 3,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4 What amount should be recognized as accounts payable
on February 15, 2022?
L 2700,000
b. 3,100,000
e 8,500,000
d 3,000,000
PE
877
Transcribed Image Text:Problem 12-18 (IAA)
On November 15, 2021, Diamond Company entered into a
commitment to purchase 10,000 ounces of gold on February
15, 2022 at a price of P310 per ounce.
On December 31, 2021, the market price of gold is P270 per
ounce. On February 15, 2022, the price of gold is P300 per
ounce.
1. What amount should be recognized as loss on purchase
commitment on December 31, 2021?
a 400,000
b. 100,000
c. 300,000
d.
2. What amount should be recognized as gain on purchase
commitment on February l5, 2022?
400,000
b. 300,000
100,000
P.
a.
C.
3. What amount should be recorded as purchases on
February 15, 2022?
a 3,000,000
b. 3,100,000
c. 2,700,000
d. 3,500,000
PagO
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