On June 1, 2013, Yenex Corporation Signed a Binding, Non-Cancellable

question 66

Essay

On June 1, 2013, Yenex Corporation signed a binding, non-cancellable contract with AB Corporation to purchase, during the following 12 months, 500 units of Product Z at $30 each. By December 31, 2013, Yenex Corporation had purchased and paid for 400 of the units (debit inventory and credit cash, $12,000). At the end of 2013, Product Z could be purchased at a firm cash price of $27 per unit. (Assume amounts are material.)
(a) Give any entry required at December 31, 2013 (end of the accounting period).
(b) On March 30, 2013, Yenex Corporation purchased the remaining units under the contract. At that date, the units could have been purchased for a firm cash price of $28. Give the required entry (entries) under IFRS.

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Definitions:

Transnational Agreements

Contracts or treaties made between two or more countries to address issues that transcend national borders, such as trade, environmental protection, or security.

Globality

The condition of being global, especially in terms of the reach and impact of economic, social, and cultural processes.

Transnational Processes

Activities, practices, or phenomena that transcend national boundaries, influencing or shaping actions across countries.

Neoliberal Capitalist Markets

Economic systems characterized by free market competition, minimal government intervention, and an emphasis on privatization and deregulation.