Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 16-6 (part level submission) on january 1

Exercise 16-6 (Part Level Submission) On January 1, 2020, Sheridan Ltd. entered into a purchase...

60.1K

Verified Solution

Question

Accounting

Exercise 16-6 (Part Level Submission) On January 1, 2020, Sheridan Ltd. entered into a purchase commitment contract to buy 10,300 oranges from a local company at a price of $0.40 per orange any time during the next year. The contract provides Sheridan with the option either to take delivery of the oranges at any time over the next year, or to settle the contract on a net basis for the difference between the agreed-upon price of $0.40 per orange and the market price per orange for any oranges that have not been delivered. As at January 31, 2020, Sheridan Ltd. did not take delivery of any oranges, and the market price for an orange was $0.39. (a) Assuming that Sheridan Ltd. follows IFRS, how should Sheridan Ltd. account for this purchase agreement if it fully intends to take delivery of all 10,300 oranges over the next year? Prepare any required journal entries at January 1 and January 31. (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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

I need a copy of organized data in a spreadsheet with rows and columns labeled, can anyone...

Basic Math
Q

To 1.0 L of a 0.34 M solution of HClO2 is added 0.15 mol of...

Chemistry
Q

In a localized capacitance method for a Long transmission line what could be consider a drawback...

Electrical Engineering
Q

Give an example from your personal experience of how differences in tasks, personal background, and training...

General Management
Q

The developing economies share of the global gross domestic product GDP from 2003 to 2017...

Statistics
Q

K What conjecture can you make Make a conjecture Choose th A The sum is...

Calculus
Q

is a function write yes or no neither 3 Domain Range Function

Calculus
Q

The area of a property decreases by 4 each year Which statement is correct The...

Algebra
Q

Next question Fill in the blank so that the resulting statement is true A sample...

Algebra
Q

This assignment is self explainatory. This is a communications and softskills class and there is...

Accounting
Q

Tristar Production Company began operations on September 1, 2018. Listed below are a number of...

Accounting
Q

D=7,605Q=195P=$48C=$4.80 Required: 1. For Thomas, calculate the ordering cost, the carrying cost, and the total...

Accounting