Valix Finacc vol 1 Problem 7-35

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 7-35

12/31/2008       Loss on purchase commitment                                   500,000

                                Estimated liability for PC                                                             500,000

03/31/2009       Purchase (100,000 x 54)                                              5,400,000

                        Estimated liability for PC                                             500,000

                                Accounts payable                                                                    5,500,000

                                Gain on purchase commitment                                                 400,000