Question

During 2016, Boge Corporation signed a noncancelable contract to purchase 10,000 bushels of soybeans at $5 per bushel with delivery to be made in 2017. On December 31, 2016, the price of soybeans had fallen to $4.50 per bushel. On May 1, 2017, Boge takes delivery of the soybeans when the price is $4.75 per bushel.
Required:
Prepare the journal entries required on December 31, 2016, and May 1, 2017.


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  • CreatedOctober 05, 2015
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