![Problem 9-18 Purchase commitments (Appendix] In November 2018, the Brunswick Company signed two purchase commitments. The fir](http://img.homeworklib.com/questions/b0617cc0-1319-11ea-b183-05fdd2ffa9d4.png?x-oss-process=image/resize,w_560)
Homework Answers
ANSWER
| Date | General Journal | |||
| 1a. | Dec.15 | Purchases (17,000* $14) | $238,000 | |
| Cash | $238,000 | |||
| b | Dec.15 | Purchases (17,000* $13.50) | $229,500 | |
| Loss on purchase commitment | $8,500 | |||
| Cash | $238,000 | |||
| 2a. | Dec.31 | No entry required | ||
| b | Estimated loss on purchase commitments(27,000* 0.7) | $18,900 | ||
| Estimated liability on purchase commitments | $18,900 | |||
| 3a | Mar.15 | Purchases (27,000* $15) | $405,000 | |
| Cash | $405,000 | |||
| b | Mar.15 | Purchases (27,000* $14.00) | $378,000 | |
| Loss on purchase commitment | $8,100 | |||
| Estimated liability on purchase commitments | $18,900 | |||
| Cash | $405,000 |
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