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In March 2024, the Metal Tool Company signed two purchase commitments. The first commitment requires Metal to purchase inventory for $107,000 by June 15, 2024. The second commitment requires the company to purchase inventory for $157,000 by August 20, 2024. The company's fiscal year-end is June 30. Metal uses a periodic inventory system. The first commitment is exercised on June 15, 2024, when the market price of the inventory purchased was $88,500. The second commitment was exercised on August 20, 2024, when the market price of the inventory purchased was $123,500. Required: Prepare the journal entries required on June 15, June 30, and August 20, 2024, to account for the two purchase commitments. Assume that the market price of the inventory related to the outstanding purchase commitment was $142,800 at June 30. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Date June 15, 2024 Purchases Answer is not complete. General Journal Debit Credit

In March 2024, the Metal Tool Company signed two purchase commitments. The first commitment requires Metal to purchase inventory for $107,000 by June 15, 2024. The second commitment requires the company to purchase inventory for $157,000 by August 20, 2024. The company's fiscal year-end is June 30. Metal uses a periodic inventory system. The first commitment is exercised on June 15, 2024, when the market price of the inventory purchased was $88,500. The second commitment was exercised on August 20, 2024, when the market price of the inventory purchased was $123,500. Required: Prepare the journal entries required on June 15, June 30, and August 20, 2024, to account for the two purchase commitments. Assume that the market price of the inventory related to the outstanding purchase commitment was $142,800 at June 30. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Date June 15, 2024 Purchases Answer is not complete. General Journal Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In March 2024, the Metal Tool Company signed two purchase commitments. The first commitment requires Metal to purchase inventory for $107,000 by June 15, 2024. The second commitment requires the company to purchase inventory for $157,000 by August 20, 2024. The company's fiscal year-end is June 30. Metal uses a periodic inventory system. The first commitment is exercised on June 15, 2024, when the market price of the inventory purchased was $88,500. The second commitment was exercised on August 20, 2024, when the market price of the inventory purchased was $123,500. Required: Prepare the journal entries required on June 15, June 30, and August 20, 2024, to account for the two purchase commitments. Assume that the market price of the inventory related to the outstanding purchase commitment was $142,800 at June 30. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Date June 15, 2024 Purchases Answer is not complete. General Journal Debit Credit
Transcribed Image Text:In March 2024, the Metal Tool Company signed two purchase commitments. The first commitment requires Metal to purchase inventory for $107,000 by June 15, 2024. The second commitment requires the company to purchase inventory for $157,000 by August 20, 2024. The company's fiscal year-end is June 30. Metal uses a periodic inventory system. The first commitment is exercised on June 15, 2024, when the market price of the inventory purchased was $88,500. The second commitment was exercised on August 20, 2024, when the market price of the inventory purchased was $123,500. Required: Prepare the journal entries required on June 15, June 30, and August 20, 2024, to account for the two purchase commitments. Assume that the market price of the inventory related to the outstanding purchase commitment was $142,800 at June 30. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Date June 15, 2024 Purchases Answer is not complete. General Journal Debit Credit
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