Business, 30.04.2021 18:50 TheMixingToad

American Italian Pasta Company (AIPC) manufactures several varieties of pasta. On January 1, 2020, AIPC had excess commodity inventories carried at acquisition cost of $1,000,000. These commodities could be sold or manufactured into pasta later in the year. To hedge against possible declines in the value of its commodities inventory, on January 6 AIPC sold commodity futures, obligating the company to deliver the commodities in February for $1,100,000. The futures exchange requires a $20,000 margin deposit. On February 19, the futures price increased to $1,150,000 and the company closed out its futures contract. Spot prices continued to rise and AIPC sold its inventory for $1,175,000 in cash on March 2. Required:
Prepare the journal entries related to AIPC’s futures contract and sale of commodities inventory.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 13:30

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?

Answers: 2

Answer

Business, 22.06.2019 16:00

In macroeconomics, to study the aggregate means to study blank

Answers: 1

Answer

Business, 22.06.2019 18:20

Now ray has had the tires for two months and he notices that the tread has started to pull away from the tire. he has already contacted the place who sold the tires and calmly and accurately explained the problem. they didn’t him because they no longer carry that tire. so he talked with the manager and he still did not get the tire replaced. his consumer rights are being violated. pretend you are ray and write a letter to the company’s headquarters. here are some points to keep in mind when writing the letter: include your name, address, and account number, if appropriate. describe your purchase (name of product, serial numbers, date and location of purchase). state the problem and give the history of how you tried to resolve the problem. ask for a specific action. include how you can be reached.

Answers: 3

Answer

Business, 22.06.2019 23:30

What is the difference between career options in the law enforcement pathway and career options in the correction services pathway?

Answers: 1

Answer

You know the right answer?

American Italian Pasta Company (AIPC) manufactures several varieties of pasta. On January 1, 2020, A...

Questions