On 1 July 2023 Busta Ltd holds a well-diversified portfolio of shares that is valued at $1.55 million. On this date it enters into 60 futures contracts on All Ordinaries Share Price Index futures in which it takes a sell position. The All Ordinaries Index on 1 July 2023 is 2500 and the total price of the futures contract is calculated as 2500 × 60 × $10 contracts = $1 500 000. A total deposit of $100 000 is paid on the futures contracts.

On 29 July 2023 Busta Ltd decides to sell its portfolio of shares and to close out its futures contracts. On this date, the market value of the share portfolio is $1.725 million and the All Ordinaries Index is 2720. Provide the journal entries to record the above transactions assuming that the above arrangement is not designated a cash flow hedge.