Arlington Steel Company is a producer of raw steel and steel-related products. On January 3,2022 , Arlington enters into a firm commitment to purchase 10,000 tons of iron ore pellets from a supplier to satisfy spring production demands. The purchase is to be at a fixed price of $80 per ton on April 30, 2022. To protect against the risk of changes in the fair value of the commitment contract, Arlington enters into a futures contract to sell 10,000 tons of iron ore on April 30 for $80 /ton (the current price). The contract calls for net cash settlement, and the company must report changes in the fair values of its hedging instruments each quarter. Required: On March 31, the price of iron ore fell to $79 /ton, and then to $78 /ton on April 30. 1. Calculate the net cash settlement at April 30, 2022. 2. Prepare the journal entries for the period January 3 to April 30, 2022, to record the firm commitment, necessary adjustments for changes in fair value, and settlement of the futures contract. Complete this question by entering your answers in the tabs below. Calculate the net cash settlement at April 30, 2022. Prepare the journal entries for the period January 3 to April 30,2022 , to record the firm commitment, necessary adjustments for changes in fair value, and settlement of the futures contract. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 567 Record the firm commitment to purchase 10,000 tons of iron ore pellets from a supplier to satisfy spring production demands. Note: Enter debits before credits. Journal entry worksheet 7 Record the change in fair value of the futures contract to sell 10,000 tons of iron ore on April 30 for $80 /ton but the price of iron ore fell to $79 /ton on March 31. Note: Enter debits before credits. Journal entry worksheet 1 7 Record the change in fair value of the firm commitment to sell 10,000 tons of iron ore on April 30 for $80 /ton but the price of iron ore fell to $79/ ton on March 31. Note: Enter debits before credits. Journal entry worksheet 1 Record the change in fair value of the futures contract when the price of iron ore fell to $78/ ton on April 30 . Note: Enter debits before credits. Journal entry worksheet 1 Record the net settlement of the futures contract. Note: Enter debits before credits. Journal entry worksheet Record the purchase of inventory. Note: Enter debits before credits