During 2010, the Boge Corporation signed a noncancelable contract to purchase 10,000 bushels of soybeans at $5

Question:

During 2010, the Boge signed a noncancelable contract to purchase 10,000 bushels of soybeans at $5 per bushel with delivery to be made in 2011. On December 31, 2010, the price of soybeans had fallen to $4.50 per bushel. On May 1, 2011, the Boge takes delivery of the soybeans when the price is $4.75 per bushel.

Required
Prepare the journal entries required on December 31, 2010 and May 1, 2011.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...