Brief Exercise 9-08
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Kingbird Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $966,100. At December 31, 2020, the raw materials
to be purchased have a market value of $921,000. In 2021, Kingbird paid $966,100 to obtain the raw materials which were worth $921,000. Prepare the entry to record the purchase. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the
amounts.)
Account Titles and Explanation
Debit
Credit
Unrealized Holding Gain or
45100
Estimated Liability on P
45100
Unrealized Holding Gain or