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On January 1, 2017, Blossom Inc. agrees to buy 3 kilos of gold at $50,000...

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Accounting

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On January 1, 2017, Blossom Inc. agrees to buy 3 kilos of gold at $50,000 per kilo from Golden Corp on April 1, 2017, but does not intend to take delivery of the gold. On the day that the contract was entered into, the fair value of this futures contract that trades on the Futures Exchange was zero. On January 1, 2017, Blossom is required to deposit $71 with the stockbroker as a margin." The fair value of the futures subsequently fluctuated as follows: Fair Value of Futures Contract $541 $125 $350 $850 Date January 20, 2017 February 6, 2017 February 28, 2017 March 14, 2017 On the settlement date, the spot price of gold is $51,000 per kilo. Assume that Blossom complies with IFRS. Your answer is partially correct. Try again. Prepare the journal entry for the day the futures contract was signed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date anuary 1, 2017 Account Titles and Explanation Debit Credit Cash

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