Question 2 (3 Marks) On June 1. Year 1. Cows Company entered into a contract with Good Food Company to purchase 1,000 ba

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Question 2 3 Marks On June 1 Year 1 Cows Company Entered Into A Contract With Good Food Company To Purchase 1 000 Ba 1 (50.84 KiB) Viewed 79 times

Question 2 (3 Marks) On June 1. Year 1. Cows Company entered into a contract with Good Food Company to purchase 1,000 bales of organic hay on January 30, Year 2, at a price of $30 per tale The hay will be grown especially for Cows and is needed to feed the company's herd of bison. On December 1. Year 1. Cows company sells its herd of bloon. As a result, the company no longer has a need for the organic hay that will be delivered on January 30. Year 2, and the company does not believe it will be able to sell the hay to a third party. Cows company is able to cancel the contract with Good Feed for a cancellation fee of $20,000. Required: Determine what accounting entries, if any, Cows Company should make on December 31, Year 1, related to the contract to purchase 1,000 bales of hay on January 30, Year 2