Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2020, ivanhoe inc agrees to buy 3 kg

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

90.2K

Verified Solution

Question

Accounting

image
image
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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

38 A device Fig 1 26 consists of a smooth L shaped rod located in...

Geometry
1.2K views

a Similarity Question 1 Select one BE In the figure above which of the following...

Geometry
1.2K views

Given the proof below and that Statement 4 is 1 23 23 22 by the...

Statistics
1.2K views

work ployees at the Me My Mop and I cleaning ee choices from first to...

Calculus
1.2K views

How would you remove the discontinuity of f at 3 f x x 2x 3...

Calculus
1.2K views

oblem 6 Evaluate the following sum n 1 2i A n 4n B n 4n...

Accounting
1.2K views

Fogerty Company makes two products-titanlum Hubs and Sprockets....

Accounting
1.2K views

Is the cost of direct Labor by unit and The % of the expected income...

Accounting
1.2K views

The ThirstBuster Company is famous for their pop drinks. The company expects to produce 2,167,000...

Accounting
1.2K views

The stockholders' equity accounts of Sarasota Corp. on January 1, 2022, were as follows. Preferred...

Accounting
1.2K views

Describe the additional accounts and procedures used in manufacturing companies. In addition, explain the computation...

Accounting
1.2K views

Alex bought his principal residence for $175000 on June 5, 2016. He sold it on...