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Question - Broncos Builders Ltd. uses fir 2x6 lumber as its framing material. On November 15, 2020, Broncos enters into a forward contract for 1,500,000 board feet of lumber at $ 0.25 per board foot to be delivered on March 2021.On December 31, 2020, the market price was $ 0.26 per board foot. On March 5, 2021, Broncos took delivery of 1,500,000 board feet for $ 0.25 and settled the forward contract. The market rate on this date was $ 0.28 per board foot.
Required - Record applicable journal entries on the following dates.
-November 15, 2020
-December 31, 2020
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