Exercise 17-28 Concord Co. uses titanium in the production of its specialty drivers. Concord anticipates that it will need to purchase 330 ounces of titanium in November 2017, for clubs that will be sold in advance of the spring and summer of 2018. However, if the price of titanium increases, this will increase the cost to produce the clubs, which will result in lower profit margins. To hedge the risk of increased titanium prices, on May 1, 2017, Concord enters into a titanium futures contract and designates this futures contract as a cash flow hedge of the anticipated titanium purchase. The notional amount of the contract is 330 ounces, and the terms of the contract give Concord the option to purchase titanium at a price of $825 per ounce. The price will be good until the contract expires on November 30, 2017 Assume the following data with respect to the price of the call options and the titanium inventory purchase Spot Price for November Delivery Date May 1, 2017 June 30, 2017 September 30, 2017 $825 per ounce 858 per ounce 866 per ounce Present the journal entries for the following dates/transactions. (a) May 1, 2017-Inception of futures contract, no premium paid (b) June 30, 2017-Concord prepares financial statements (c) September 30, 2017-Concord prepares financial statements. (d) October 5, 2017-Concord purchases 330 ounces of titanium at $866 per ounce and settles the futures contract. (e) December 15, 2017-Concord sells clubs containing titanium purchased in October 2017 for $259,000. The cost of the finished goods inventory is $126,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) May 1, 2017