On September 5, 2024, Howard Corporation signed a purchase commitment to purchase inventory for $128,000 on or before March 31, 2025. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2025, and the inventory was purchased for cash at the contract price. On the purchase date of March 4, 2025, the market price of the inventory was $114,400. The market price of the inventory on December 31, 2024, was $118,200. The company uses a perpetual inventory system. Required: 1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2024. 2. Prepare the journal to record the purchase on March 4, 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal to record the purchase on March 4, 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the journal to record the purchase on March 4, Note: Enter debits before credits. Date March 04, 2025 > Lǝ25. General Journal Debit Credit
On September 5, 2024, Howard Corporation signed a purchase commitment to purchase inventory for $128,000 on or before March 31, 2025. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2025, and the inventory was purchased for cash at the contract price. On the purchase date of March 4, 2025, the market price of the inventory was $114,400. The market price of the inventory on December 31, 2024, was $118,200. The company uses a perpetual inventory system. Required: 1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2024. 2. Prepare the journal to record the purchase on March 4, 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal to record the purchase on March 4, 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the journal to record the purchase on March 4, Note: Enter debits before credits. Date March 04, 2025 > Lǝ25. General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Gadubhi
Transcribed Image Text:On September 5, 2024, Howard Corporation signed a purchase commitment to purchase inventory for $128,000 on or
before March 31, 2025. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2025, and
the inventory was purchased for cash at the contract price. On the purchase date of March 4, 2025, the market price of the
inventory was $114,400. The market price of the inventory on December 31, 2024, was $118,200. The company uses a
perpetual inventory system.
Required:
1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2024.
2. Prepare the journal to record the purchase on March 4, 2025.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the journal to record the purchase on March 4, 2025.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
<
1
Record the journal to record the purchase on March 4,
Note: Enter debits before credits.
Date
March 04, 2025
>
Lǝ25.
General Journal
Debit
Credit
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education