On September 5, 2024, Howard Corporation signed a purchase commitment to purchase inventory for $128,000 on or before March 31, 2025. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2025, and the inventory was purchased for cash at the contract price. On the purchase date of March 4, 2025, the market price of the inventory was $114,400. The market price of the inventory on December 31, 2024, was $118,200. The company uses a perpetual inventory system. Required: 1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2024. 2. Prepare the journal to record the purchase on March 4, 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal to record the purchase on March 4, 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the journal to record the purchase on March 4, Note: Enter debits before credits. Date March 04, 2025 > Lǝ25. General Journal Debit Credit
On September 5, 2024, Howard Corporation signed a purchase commitment to purchase inventory for $128,000 on or before March 31, 2025. The company's fiscal year-end is December 31. The contract was exercised on March 4, 2025, and the inventory was purchased for cash at the contract price. On the purchase date of March 4, 2025, the market price of the inventory was $114,400. The market price of the inventory on December 31, 2024, was $118,200. The company uses a perpetual inventory system. Required: 1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2024. 2. Prepare the journal to record the purchase on March 4, 2025. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal to record the purchase on March 4, 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the journal to record the purchase on March 4, Note: Enter debits before credits. Date March 04, 2025 > Lǝ25. General Journal Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...
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