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On January 1, 2020, Ivanhoe Inc agrees to buy 3 kg of gold at $35,000...

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Accounting

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On January 1, 2020, Ivanhoe Inc agrees to buy 3 kg of gold at $35,000 per kilogram from Golden Corp on April 1, 2020, 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, 2020, Ivanhoe is required to deposit $68 with the stockbroker as a margin. The fair value of the futures subsequently fluctuated as follows: Fair Value of Futures Contract $516 Date January 20, 2020 February 6, 2020 February 28, 2020 $124 $366 March 14, 2020 $880 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 for the amounts.) Date Account Titles and Explanation Debit Credit January 1.2020

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