Yakuzi Bakeries specializes in making cakes,cookies,and other pastries out of rice flour which they grind themselves.Yakuzi anticipates purchasing 40,000 pounds of rice in January 2015.On November 1,2014,Yakuzi entered into a futures contract with Rising Sun Growers to purchase 40,000 pounds of rice on January 1,2015,at $0.50 per pound.On December 31,2014,and January 1,2015,the prevailing market price for rice is $0.55 per pound.Yakuzi purchases the rice and settles the futures contract on January 1,2015.
Make the necessary entries on Yakuzi's books at
(a)November 1,2014
(b)December 31,2014
(c)January 1,2015

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The Answer of Yakuzi Bakeries specializes in making cakes,cookies,and other pastries out of rice flour which they grind themselves.Yakuzi anticipates purchasing 40,000 pounds of rice in January 2015.On November 1,2014,Yakuzi entered into a futures contract with Rising Sun Growers to purchase 40,000 pounds of rice on January 1,2015,at $0.50 per pound.On December 31,2014,and January 1,2015,the prevailing market price for rice is $0.55 per pound.Yakuzi purchases the rice and settles the futures contract on January 1,2015.
Make the necessary entries on Yakuzi's books at
(a)November 1,2014
(b)December 31,2014
(c)January 1,2015

Yakuzi Bakeries Specializes in Making Cakes,cookies,and Other Pastries Out of Rice