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: 46% (13 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...
-
Suppose the market price of the put option in Question 18.5 is $10, how would you take advantage of this mispricing? Explain your answer.
-
Sophie's Sofas buys sofas for \($1400\) each and sells them for \($2400\) each. On 1 July 2025, 45 sofas were in inventory. Sophie's Sofas completed the transactions below during July. A physical...
-
Deskins Clothiers is a small company that manufactures tall-mens suits. The company has used a standard cost accounting system. In May 2012, 11,200 suits were produced. The following standard and...
-
a) Explain the following terms as used in real estate appraisals i. Value in use ii. iii. Liquidation value Insurable value b) Describe the cost approach of real estate valuation c) Explain the...
-
6.1.Task: Solve the following recurrence relations by using the following methods. 1.Backward Substitution Method 2.Forward Substitution Method 3.Recursion Tree Method 4.Telescoping Method i.X(n) =...
-
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...
-
Rectangles ABCD and DEFG are similar. The length of ABCD is 24 feet and the perimeter is 84 feet. The width of DEFG is 3 yards. Find the ratio of the area of ABCD to the area of DEFG.
-
Several car mechanics at Firestone had their tools stolen by vandals overnight. The mechanics sued Firestone for a breach of their Bailment agreement. Firestone claims there was never a Bailment...
-
Case study John and Laura had purchased their first home for $600,000. They approached the bank for a mortgage they required a down payment. Two friends Larry and Kerry came forward and offered to...
-
The Mad Beach Pub is a small casual restaurant located in YOUR STATE.The business is privately owned and currently has 4 full time employees and 15 part time employees. Mandie, a 46 year old...
-
Watch the following two video clips, after work in groups to answer the following questions. 1.Apply social identity theory and self-concept to explain Mitch's perception of himself as a doctor....
-
A religious accommodation claim is different from a disparate treatment claim. An individual alleging denial of religious accommodation is seeking an adjustment of a neutral work rule that infringes...
-
Given that Creative Systems Inc.s stock is currently selling for $50 a share, calculate the amount of money that Alister Cooper will make (or lose) on each of the following transactions. Assume that...
-
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?
-
Characterize the nature of motivation, including its importance and focus Identify and describe the need theories on motivation. Identify and describe the behavior theories on motivation. Identify...
-
Calculate the amount that Astrid should withdraw from her college savings fund of $21000 if she wishes to withdraw equal amounts at the end of each month for four years. The annual nominal interest...
-
Jason borrows $ 10300 for the next 4 years at a variable interest rate. Assume that the interest accumulates for 4 years at an annual nominal rate of 11% compounded quarterly. Calculate the...
Study smarter with the SolutionInn App