On November 17, 2020, GGG Airways entered in to a commitment to purchase 3,000  barrels of aviation fuel for P9,000,000 on March 23, 2021. GGG entered into this  purchase commitment to protect itself against the volatility in the aviation fuel market.  By December 31, 2020, the purchase price of aviation fuel had fallen to P2,200 per  barrel. However, by March 23, 2021, when GGG took delivery of the 3,000 barrels, the  price of aviation fuel had risen to P2,500 per barrel.  How much should be recognized as  loss on purchase commitment on December 31, 2020?

On May 1, 2020, Northern Refining Corp. (NRC) entered into a contract to purchase 80,000 barrels of Brent crude oil at $41 per barrel. NRC took delivery of 40,000 barrels on June 15 when the price for immediate delivery (spot price) of Brent crude oil was $42 per barrel. NRC had not yet taken delivery of the remaining barrels by its June 30, 2020 year end. The spot price on June 30, 2020, was $37 per barrel. Refining costs are $25 per barrel, and the refined product can be sold for $63 per barrel. NRC uses IFRS for reporting its financial results.What amount should NRC recognize as a provision for this contract? Assume that the time value of money element is immaterial. Question 12 options:   a) $120,000   b) $240,000   c) $160,000   d) No provision is required for this contract.

During 2020, Univ Company signed a non-cancellable contract with Univy to purchase 1,000 tons of cotton at P1, 200 with delivery to be made in 2021. On December 31, 2020, the price of cotton had fallen for P1,150 per ton. The company expects delivery of cotton when the price is P1,180 per ton on April 2021. What amount of gain from recovery of loss on purchase commitment, if any, should be recognized by Univ in 2021?

During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900 per sack with delivery to be made in 2022. On December 31, 2021, the price of rice had fallen to P850 per sack. On May 9, 2022, Tartarus Company accepts delivery of rice when the price is P880 per sack. 54. In December 31, 2021 income statement, what amount of loss on purchase commitment should be recognized? A 15,000 B. 10,000 С. 25,000 D. 0 55. What amount of recovery of loss on purchase commitment should Tartarus recognize on May 9, 2022? A 10,000 B. 15,000 С. 25,000 D. 0 56. What amount of purchases should be recorded on May 9, 2022? C. 425,000 D. 480,000 A 450,000 B. 440,000

On September 1, 2021, Laguna Grill determined that it will need to purchase 100,000 kilos of tuna fish on January 31, 2022. Because of the volatile fluctuation in the price of tuna fish, on September 1, 2021, the entity negotiated a forward contract with a reputable financial institution for the entity to purchase 100,000 kilos of tuna fish on January 31, 2022, at a price of P8,000,000 or P80 per kilo. The forward contract is designated as a cash flow hedge. The market price of tuna fish per kilo is P78 on December 31, 2021, and P75 on January 31, 2022. Required: Prepare journal entries for 2021 and 2022.      agavtay Company is a golf course developer that constructs approximately 5 courses each year. On July 1, 2021, the entity has agreed to buy 5,000 trees on March 1, 2022 to be planted in the courses it intends to build. To protect itself from the variability of the market price of trees, the entity entered into a forward contract with a reputable bank. The price is set at P1,500…

On October 1,2018, Bane Company entered into a 6-month, 5,200,000 purchase commitment for a supply of a special product on March 31, 2019. On December 31, 2018, the market value of this material had fallen to 5,000,000. On March 31, 2019, the market value of the purchase commitment is 4,900,000. What is the loss on purchase commitment that should bane Company recognized on March 31, 2019? Select the correct response: 200,000 300,000 O100,000

Hanshaben

Pharoah Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2020, to expand its production capacity to meet customers' demand for its product. Pharoah issues a(n) $1,520,000, 5-year, zero-interest- bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 12%. The company will pay off the note in five $304,000 installments due at the end of each year over the life of the note. Prepare the journal entry at the date of purchase.

58. During 2021, Tartarus Company signed a noncancellable contract to purchase 500 sacks of rice at P900 per sack with delivery to be made in 2022. On December 31, 2021, the price of rice had fallen to P850 per sack. On May 9, 2022, Tartarus Company accepts delivery of rice when the price is P880 per sack. What amount of purchases should be recorded on May 9, 2022?

please do this correctly