In November 2024, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 19,000 units of inventory at $16 per unit by December 15, 2024. The second commitment requires the company to purchase 29,000 units of inventory at $17 per unit by March 15, 2025. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. 1. Prepare the journal entry to record the December 15 purchase for cash assuming the following alternative unit market prices on that date: a. $16.50 b. $15.50 2. Prepare any necessary adjusting entry at December 31, 2024, for the second purchase commitment assuming the following alternative unit market prices on that date: a. $18.50 b. $16.30 3. Assuming that the unit market price on December 31, 2024, was $16.30, prepare the journal entry to record the purchase on March 15, 2025, assuming the following alternative unit market prices on that date: a. $17.50 b. $16.00

In November 2024, the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase 19,000 units of inventory at $16 per unit by December 15, 2024. The second commitment requires the company to purchase 29,000 units of inventory at $17 per unit by March 15, 2025. Brunswick's fiscal year-end is December 31. The company uses a periodic inventory system. Both contracts were exercised on their expiration date. 1. Prepare the journal entry to record the December 15 purchase for cash assuming the following alternative unit market prices on that date: a. $16.50 b. $15.50 2. Prepare any necessary adjusting entry at December 31, 2024, for the second purchase commitment assuming the following alternative unit market prices on that date: a. $18.50 b. $16.30 3. Assuming that the unit market price on December 31, 2024, was $16.30, prepare the journal entry to record the purchase on March 15, 2025, assuming the following alternative unit market prices on that date: a. $17.50 b. $16.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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