Purchase Commitments Prater Company has been having difficulty obtaining key raw materials for its manufacturing process. The
Question:
Purchase Commitments Prater Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term non-cancelable purchase commitment with its largest supplier of this raw material on November 30, 2011, at an agreed price of $400,000. At December 31, 2011, the raw material had declined in price to $375,000.What entry would you make on December 31, 2011, to recognize these facts?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 42% (14 reviews)
Unrealized Holding Gain or ...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Question Posted:
Students also viewed these Accounting questions
-
Prater Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term, non-cancelable purchase commitment with its largest...
-
Marvin Gaye Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term non-cancelable purchase commitment with its largest...
-
Canseco Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest...
-
In Exercises 8586, find a. (f g)(x); b. (g f)(x); c. (f g)(3). f(x)=x, g(x) = x + 1
-
The comparative financial statements of Harbour View for 2014, 2013, and 2012 included the selected data shown below. Required 1. Compute these ratios for 2014 and 2013: a. Current ratio b. Acid-test...
-
During the current month, Standard Corporation completed Job 310 and Job 312. Job 310 cost $70,000 and Job 312 cost $50,000. Job 312 was sold on account for $90,000. Journalize the entries for the...
-
Rewrite the finite difference approximations developed in Problem 9.9 for the case when the material properties \(\kappa, ho, C\) are functions of temperature.
-
1. Discuss the pros and cons of using average demand to assess capacity requirements. Is this a reasonable approach for the ER? 2. Make a recommendation for Jenn as to what she should do and the...
-
Valuation Problem: Question 1 Consider a 200,000 SF oce building complex, with NOI of $25/SF/year with rents and operating expenses paid in arrears (at the end of the year) annually, and no capital...
-
Ann Hoffman, owner of Hoffman Industries, is negotiating with the bank for a $250,000, 90-day, 15 percent loan effective July 1 of the current year. If the bank grants the loan, the net proceeds will...
-
Relative Sales Value Method During 2011, Crawford Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Crawford for a lump sum of $60,000, because it is...
-
Purchase Commitments at December 31, 2011, Volkan Company has outstanding non-cancelable purchase commitments for 40,000 gallons, at $3.00 per gallon, of raw material to be used in its manufacturing...
-
Describe at least two ways that enzymes are used in the food industry.
-
In light of growing globalization and outsourcing, which have had and will continue to have a significant impact on supply chain operations, information exchange can significantly improve how...
-
Find all vectors v = (a, b, c) that solve the given vector equation. vx = 7
-
What are similarities and differences between a Data Flow Diagram (DFD) and an Entity-Relationship Diagram (ERD)? and what are reasons why you would choose one approach over the other?
-
discuss the role of the Project Management Office (PMO) in fostering organizational learning and continuous improvement through project retrospectives and lessons-learned initiatives ?
-
Write a program to print below pattern? 1 22 333 4444 333 22 1
-
Last year, you purchased equipment in the HIM department for $14,250. You have been told that the equipment you bought has depreciated in value by 20 percent. What is the value of the equipment now?
-
Ex. (17): the vector field F = x i-zj + yz k is defined over the volume of the cuboid given by 0x a,0 y b, 0zc, enclosing the surface S. Evaluate the surface integral ff, F. ds?
-
What is the error in the following pseudocode? // This program uses an array to display five names. Constant Integer SIZE = 5 Declare String names [SIZE] Declare Integer index For index = 0 TO SIZE...
-
What is the full disclosure principle in accounting? Why has disclosure increased substantially in the last 10 years?
-
What is the full disclosure principle in accounting? Why has disclosure increased substantially in the last 10 years?
-
The FASB requires a reconciliation between the effective tax rate and the federal governments statutory rate. Of what benefit is such a disclosure requirement?
-
Bond Current Rating End year 1 payoff End year 2 payoff End year 3 payoff X A $6 mil $6 mil $ 106 mil N BB $ 5 mil $5 mil $ 105 mil
-
Ethical public speaking begins before you start writing your speech. Group of answer choices True False
-
A role that directly generates revenue for an employer is a ______ value creator value enabler competency job
Study smarter with the SolutionInn App