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On January 1, 2020, Carla Vista Ltd. entered into a purchase commitment contract to buy 14,500 oranges from a local company at a price of $0.40 per orange any time during the next year. The contract provides Carla Vista with the option either to take delivery of the oranges at any time over the next year, or to settle the contract on a net basis for the difference between the agreed-upon price of $0.40 per orange and the market price per orange for any oranges that have not been delivered. As at January 31, 2020, Carla Vista Ltd. did not take delivery of any oranges, and the market price for an orange was $0.35. - Your answer is partially correct. Assuming that Carla Vista Ltd. follows IFRS, how should Carla Vista Ltd. account for this purchase agreement if it fully intends to take delivery of all 14,500 oranges over the next year? Prepare any required journal entries at January 1 and January 31. (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 Account Titles and Explanation Debit Credit January Raw Materials 5800 1 January 725 31 Accounts Payable Accounts Payable Derivatives - Financial Assets/Liabilities 5800 725 List of Accounts Accounts Payable Accounts Receivable Accumulated Other Comprehensive Income Bonds Payable Cash Common Shares Compensation Expense Contributed Surplus - Conversion Rights Contributed Surplus-Conversion Rights Expired Contributed Surplus-Expired Stock Options Contributed Surplus-Stock Options Contributed Surplus - Stock Warrants Cast of Goods Sold Deficit Derivatives-Deposits Derivatives - Financial Assets/Liabilities Equipment Contributed Surplus-Stock Options Fair Value - NI Investments FairValue - OCI Investments Finished Goods Inventory Gain or Loss on Derivatives Interest Expense Interest Income Interest Payable Interest Receivable Inventory Liability under Share-Appreciation Rights Plans Loss on Redemption of Bonds Loss on Retirement of Bonds No Entry Notes Payable Notes Receivable Preferred Shares Raw Materials Retained Earnings Raw Materials Inventory Sales Revenue Supplies Unrealized Gain or Loss Unrealized Gain or Loss-OCI Unrealized Holding Gain- Futures Contract Assistance Used

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