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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