Essay
On December 15,2017 Welders Inc.signed a contract to purchase 200,000 kg of copper pipes to be received on February 15,2018.Terms of sale were COD (cash on delivery).Welders,which has a December 31 year-end,entered into a two months forward agreement to purchase the copper to mitigate its price change risk.Welders designated the forward as a cash flow hedge.Pertinent commodity prices follow:
Required:
Record the required journal entries for December 15,December 31,and February 15 using the net method.If no entries are required,state "no entry required" and indicate why.
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