Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

On September 5, 2011, Maloney Corporation signed a purchase commitment to purchase inventory for $180,000 on or before March 31, 2012. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2012 and the inventory was purchased for cash at the contract price. On the purchase date of March 4, the market price of the inventory was $182,000. The market price of the inventory on December 31, 2011, was $168,000.

a. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2011.

b. Prepare the journal to record the purchase on March 4, 2012.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M940681

Have any Question? 


Related Questions in Accounting Basics

Jay maxey retired a few years ago at age 48 courtesy of the

Jay Maxey retired a few years ago at age 48, courtesy of the numerous stock options he had been granted while president of e-shops.com, an Internet start-up company. He soon moved to Montana to follow his dream of living ...

Using financial statement disclosures to infer bad debt

Using Financial Statement Disclosures to Infer Bad Debt Expense The 2009 annual report for Sears Holding Corporation contained the following Description Using Financial Statement Disclosures to Infer Bad Debt Expense The ...

Review the form 10-k for the company selected for team

Review the Form 10-K for the company selected for team assignments Write a 1,050- to 1,400-word paper on the following: 1. Management's Report on Internal Control Over Financial Reporting 2. The Independent Registered Pu ...

Fill in the amounts for x y and z in the following table

Fill in the amounts for X, Y, and Z in the following table. (The company started business on January 1, 2009 31-Dec-09 31-Dec-10 Assets $4,750 $5,350 Liabilites 2150 $1,400 Cantributed Capital $1,200 $1,200 Retained earn ...

Assignmentcarlton speciality plc is a small family owned

Assignment: Carlton Speciality PLC is a small family owned firm that manufactures custom made furniture and uses job costing system. The company does not have computerised system and thus maintains all accounting records ...

The balance of the 060 par common stock account for company

The balance of the $0.60 par Common Stock account for Company was $60,000 before its recent 3-for-1 stock split. The market price of the stock was $30 per share. What occurred as a result of the split? a. The par value p ...

Treatment of intangible assets and impairmentsdetermine

Treatment of Intangible Assets and Impairments Determine accounting alternatives for intangibles. There are a number of differences between IFRS and U.S. GAAP for the treatment of intangible assets and impairments. The i ...

Francis moved in with her mother beatrice when beatrices

Francis moved in with her mother, Beatrice, when Beatrice's health started to fail. Francis cared for her mother as a devoted child and never expected anything in return. When Beatrice needed to move to a nursing home, s ...

You may have to research more than 1 company to complete

You may have to research more than 1 company to complete the Key Assignment. Plan accordingly. The purpose of this Key Assignment is to get familiar with annual reports and to understand the financial implications of the ...

Identify and explain the inventory asset and cost flows of

Identify and explain the inventory asset and cost flows of a merchandising company. Provide examples.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate