As of January 2022 Cox Corp anticipates purchasing 100.000 pounds of copper in April 2022. On...

 

Transcribed Image Text:

As of January 2022 Cox Corp anticipates purchasing 100.000 pounds of copper in April 2022. On January 1, 2022. Cox enters into a copper futures contract. Terms of the contract were as follows Contract size. 100,000 pounds of copper - Delivery price: $2.30 per pound . Expiration April 1, 2022 Spot prices for copper (per pound) over the contract period were the following. Sant ocice $2. 30 Danuary 1, 2022 March 31, 2022 $2.70 On April 1, 2022, Cox Corp. purchased the needed 100,000 pounds of copper at the market price of $270 per pound Cax also settled the futures contract on this date. On May 15, 2022, Cox Corp. sold the finished products Required: 1. Prepare the appropriate journal entry or entries related to transactions occurring in January 2022 through March 2022 (f no entry IS required for a transaction/event, select "No journal entry required" in the first account field) 2. Indicate any amounts that Cox Corp. would have included in its March 2022 quarterly balance sheet related to the futures contract. 3. Prepare the appropriate journal entry or entries related to transactions occuing in April 2022 through May 2022 (f no entry is required for a transaction/event, select "No jourmal entry required" in the first account field) As of January 2022 Cox Corp anticipates purchasing 100.000 pounds of copper in April 2022. On January 1, 2022. Cox enters into a copper futures contract. Terms of the contract were as follows Contract size. 100,000 pounds of copper - Delivery price: $2.30 per pound . Expiration April 1, 2022 Spot prices for copper (per pound) over the contract period were the following. Sant ocice $2. 30 Danuary 1, 2022 March 31, 2022 $2.70 On April 1, 2022, Cox Corp. purchased the needed 100,000 pounds of copper at the market price of $270 per pound Cax also settled the futures contract on this date. On May 15, 2022, Cox Corp. sold the finished products Required: 1. Prepare the appropriate journal entry or entries related to transactions occurring in January 2022 through March 2022 (f no entry IS required for a transaction/event, select "No journal entry required" in the first account field) 2. Indicate any amounts that Cox Corp. would have included in its March 2022 quarterly balance sheet related to the futures contract. 3. Prepare the appropriate journal entry or entries related to transactions occuing in April 2022 through May 2022 (f no entry is required for a transaction/event, select "No jourmal entry required" in the first account field)

Answer rating: 100% (QA)

1 Journal entries related to trans... View the full answer