In March 2018, the Phillips Tool Company signed two purchase commitments. The first commitment requiresPhillips to purchase inventory for $100,000 by June 15, 2018. The second commitment requires the company topurchase inventory for $150,000 by August 20, 2018. The company’s fiscal year-end is June 30. Phillips uses aperiodic inventory system.The first commitment is exercised on June 15, 2018, when the market price of the inventory purchased was$85,000. The second commitment was exercised on August 20, 2018, when the market price of the inventorypurchased was $120,000.Required:Prepare the journal entries required on June 15, June 30, and August 20, 2018, to account for the two purchasecommitments. Assume that the market price of the inventory related to the outstanding purchase commitmentwas $140,000 at June 30.

Sports Authority purchased inventory costing $22,000 by signing a 10​% ​short-term, one-year note payable. The purchase occurred on July ​31, 2021. Ivanhoe pays annual interest each year on   July 31.

On January 1, 2024, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $170,000 and $273,000, respectively. Net purchases during the year at cost and at retail were $719,200 and $890,000, respectively. Markups during the year were $9,000. There were no markdowns. Net sales for 2024 were $844,400. The retail price index at the end of 2024 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2024 balance sheet? Note: Do not round intermediate calculations.   Multiple Choice   $249,600   $327,600   $202,760   $262,080

The Cecil Booker Vending Company changed is method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2021. At December 31, 2020, inventories were $130,000 (average cost basis) and were $134,000 a year earlier. Cecil-Booker’s accountants determined that the inventories would have totaled $175,000 at December 31, 2020, and $180,000 at December 31, 2019, if determined on a FIFO basis. A tax rate of 25% is in effect for all years. One hundred thousand common shares were outstanding each year. Income from continuing operations was $500,000 in 2020 and $625,000 in 2021. There were no discontinued operations either year. Required: Prepare the journal entry at January 1, 2021, to record the change in accounting principle. (All tax effects should be reflected in the deferred tax liability account) Prepare the 2021-2020 comparative income statements beginning with income from continuing operations (adjusted for any revisions) include per share…