A company pays $8,000 to purchase futures contracts to buy 200 ounces of gold at $1,200/ ounce.

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A company pays $8,000 to purchase futures contracts to buy 200 ounces of gold at $1,200/ ounce. At the company’s year-end, the price of gold was $1,230/ounce and the value of the company’s futures contracts increased to $12,000.

Required:

Record the journal entries related to these futures.

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Intermediate Accounting Volume 2

ISBN: 9780135220498

4th Edition

Authors: Kin Lo, George Fisher

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Question Posted: Nov 01, 2022 04:18 AM

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A company pays $8,000 to purchase futures contracts to buy 200 ounces of gold at $1,200/ ounce.

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1 At the time of purchase the journal entry ...View the full answer

Intermediate Accounting Volume 2

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