What is the journal entry to record the purchase

Assignment Help Financial Accounting

Reference no: EM131215846

During the prior fiscal year, a company signed a long-term noncancellable purchase commitment with its primary supplier to purchase $2.3 million of raw materials. He paid the $2.3 million to acquire the raw materials when the raw materials were only worth $1.8 million. Assume that the purchase commitment was properly recorded. What is the journal entry to record the purchase?

Reference no: EM131215846

Questions Cloud

Option pricing model determines total compensation expense : On January 1, 2016, Ritter Company granted stock options to officers and key employees for the purchase of 15,000 shares of the company's $1 par common stock at $20 per share as additional compensation for services to be rendered over the next three ..

Discuss educations meaning both in a different era and today : Discuss Educations meaning both in a different era and today. Include the dictionary definition (Denotative Meaning) of the word/term, if possible what was the actual definition 40-50 years ago in comparison to today.

What is the bet amount to be paid to the employer : An employee receives an hourly rate of $18 with time and a half for all hours worked in excess of 40 during the week. Payroll days for the hot rent week are as follows: hours worked, 47. Federal income tax withheld, $150. Cumulative earnings for the ..

What is the journal entry to record the purchase : During the prior fiscal year, a company signed a long-term noncancellable purchase commitment with its primary supplier to purchase $2.3 million of raw materials. He paid the $2.3 million to acquire the raw materials when the raw materials were only ..

How much current is through the meter : What value of shunt resistance is required to use a 50 mV meter in a 50 A measurement application?

Price and usage variances provide additional insight : Price and usage variances provide additional insight about the:

How did the actors portray key character roles : How did the actors portray key character roles? Did they fulfill your expectation? (if the film was based upon a novel or play). What are the characters innermost dreams, feelings, and thoughts

Effect on the company total net operating income : Elbow Corporation uses part B76 in one of its products. The company's Accounting Department reports the following costs of producing the 12,000 units of the part that are needed every year. Prepare a report that shows the effect on the company's tota..

User Account

All Pages