Marigold Corp A Public Company Using Ifrs Signed A Long Term Non Cancellable Purchase Commitment With A Major Supplie 1 (56.24 KiB) Viewed 73 times
Marigold Corp., a public company using IFRS, signed a long-term non-cancellable purchase commitment with a major supplier to purchase raw materials at an annual cost of $1,500,000. At December 31, 2019, the raw materials to be purchased in 2020 have a market price of $1,247,000. Prepare any December 31, 2019 entry that is needed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019
In 2020, Marigold receives the raw materials and pays the required $1,500,000. The raw materials now have a market value of $1,187,000. Prepare the entry to record the purchase. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020
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