On January 1, 2014, Ginseng Inc. entered into a futures contract to purchase U.S. $5,840 for $6,010 Canadian in 30 days on Futures Exchange. On January 15, the fair value of the contract was $38 (reflecting the present value of the future cash flows under the contract). Ginseng Inc. was required to deposit $24 with the stockbroker as a margin.

Prepare the journal entries to update the books on January 1 and 15.

Answer rating: 100% (QA)

Journal Entries Journal Entries Date Account Tiles and Exp... View the full answer