Problem $9-18($Algo$)$ Purchase commitments $[$Appendix $9]$

In November $2024,$ the Brunswick Company signed two purchase commitments. The first commitment requires Brunswick to purchase $30,000$ units of inventory at $\backslash (\backslash$$ $14\backslash )$ per unit by December $15,2024.$ The second commitment requires the company to purchase $40,000$ units of inventory at $\backslash (\backslash$$ $15\backslash )$ 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.

Required:

$1.$ Prepare the journal entry to record the December $15$ purchase for cash assuming the following alternative unit market prices on that date:

a$.\backslash (\backslash$$ $14\mathrm{.}60\backslash )$

b$.\backslash (\backslash$$ $13\mathrm{.}40\backslash )$

$2.$ 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$.\backslash (\backslash$$ $16\mathrm{.}60\backslash )$

b$.\backslash (\backslash$$ $14\mathrm{.}40\backslash )$

$3.$ Assuming that the unit market price on December $31,2024,$ was $\backslash (\backslash$$ $14\mathrm{.}40\backslash ),$ prepare the journal entry to record the purchase on March $15,2025,$ assuming the following alternative unit market prices on that date:

a$.\backslash (\backslash$$ $15\mathrm{.}60\backslash )$

b$.\backslash (\backslash$$ $14\mathrm{.}00\backslash )$

Complete this question by entering your answers in the tabs below.

Prepare the journal entry to record the December $15$ purchase for cash assuming the following alternative unit market prices on that date.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Required $3$

Prepare the journal entry to record the December $15$ purchase for cash assuming the following alternative unit market prices on that date.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the purchase for cash of $30,000$ units when the market price is $\backslash (\backslash$$ $14\mathrm{.}60\backslash )$ per unit.

Note: Enter debits before credits.

Prepare any necessary adjusting entry at December $31,2024,$ for the second purchase commitment assuming the following alternative unit market prices on that date.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record any necessary adjusting entry related to the second purchase commitment assuming the market price is $\backslash (\backslash$$ $16\mathrm{.}60\backslash )$ per unit.

Note: Enter debits before credits.

Assuming that the unit market price on December $31,2024,$ was $\backslash (\backslash$$ $14\mathrm{.}40\backslash ),$ prepare the journal entry to record the purchase on March $15,2025,$ assuming the following alternative unit market prices on that date.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the purchase for cash of $40,000$ units when the market price is $\backslash (\backslash$$ $15\mathrm{.}60\backslash )$ per unit.

Note: Enter debits before credits.