inance for Decision$-$Making Assignment October $2024$ Page $6$ of $6$

$$ CGISA

QUESTION $4$

Read the case study$/$ scenario below and answer the questions based on the case study.

Equity Traders SA $($Pty$)$ Ltd $($ETSA$)$ is a commodities and financial product trading company.

Below are transactions that ETSA has entered into for the current financial year ending $31$ December $2024$:

$$ ETSA entered into a short position on $1000$ barrels of oil futures as a speculative trade on $5$ December $2024.$ The future$$s price is $$810$ per barrel and is a $3$ month futures contract. The spot price of oil at $31$ December $2024$ is $$850$ per barrel.

$$ ETSA purchased a call option on $5000$ of NED Ltd$$s shares, a JSE listed entity. The premium paid is R$50000$ and the call price on the shares is R$75$ per share. The current market price per share at $31$ December $2024$ is R$90$ per share.

$$ ETSA has taken a short position on contracts for difference $($CFD$$s$)$ on the gold price on $1$ December $2024.$ The contract price is $$950$ per tonne and $30$ tonnes are what the CFD is based on$.$ The gold price at $31$ December $2024$ is $$1000$ per tonne. The margin deposit required for such trade is R$100000$ which earns $12\%$ per annum.

$$ ETSA has purchased $2$ bitcoins for $$45000$ each on $15$ December $2024.$ On $31$ December, the quoted price for a bitcoin is $$38000.$

Additional Information

$$ All effects of taxation can be ignored.

$$ On $15$ and $31$ December $2024$ the Rand:Dollar exchange rate is R$18\mathrm{.}75$: $$1$ R$18\mathrm{.}15$:$$1$ respectively. The average rate for the month is R$17\mathrm{.}95$ per dollar.

Required

Prepare the journal entries to account for the various transactions as at $31$ December $2024.$

Narrations are required.