For the following scenario, prepare journal entries, general ledgers, trial balance, income statement, and balance sheet.

AA Fund had the following trades in ABC in the futures market. The stock exchange requires that a margin of 10 percent of the value of the contract be maintained throughout the life of the contract.

Transcribed Image Text:

Date Product Expiry Quantity Rate (S$) B/S Brokerage 25-Aug-07 25-Nov-07 10,000 52.5 B 5,300 18-Oct-07 25-Nov-07 15,000 51.0 B 5,200 10-Nov-07 25-Nov-07 -16,000 54.0 S 3,000 25-Nov-07 25-Nov-07 -9,000 53.0 Expiry Date FX Rate 25-Aug-07 1.5389 31-Aug-071.5432 30-Sep-07 1.5535 18-Oct-07 1.5375 31-Oct-07 1.5296 10-Nov-07 1.5431 25-Nov-07 1.5159 Date Market Price 31-Aug-0749