As of January 2019, Cox Corp. anticipates purchasing 100,000 pounds of copper in April 2019. On January 1, 2019, Cox enters into a copper futures contract. Terms of the contract were as follows: Contract size: 100,000 pounds of copper Delivery price: $2.60 per pound Expiration: April 1, 2019 Spot prices for copper (per pound) over the contract period were the following: January 1, 2019 March 31,2019 Spot_ price $2.60 $2.80 On April 1, 2019, Cox Corp. purchased the needed 100,000 pounds of copper at the market price of $2.80 per pound. Cox also settled the futures contract on this date. In May 2019, Cox Corp. completed manufacturing of its finished product (kitchen cookware). The total cost of the cookware (including the copper purchased in April 2019) was $336,000. Cox Corp. sold the cookware on May 15, 2019 for $392,000 cash. Required: 1. Prepare the appropriate journal entry or entries related to transactions occurring in January 2019 through March 2019. (If 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 2019 quarterly balance sheet related to the futures contract. 3. Prepare the appropriate journal entry or entries related to transactions occurring in April 2019 throughMay 2019ff no entry is Req 1 Req 2 Req 3 Prepare the appropriate journal entry or entries related to transactions occurring in January 2019 through March 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Jan. 1, 2019: Prepare any journal entry needed for Cox Corp.'s decision to enter into a futures contract. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Req 1 Req 2 Req 3 Prepare the appropriate journal entry or entries related to transactions occurring in January 2019 through March 2019. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet March 31, 2019: Prepare any journal entry needed for the change in value of the futures contract. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal Req 1 Req 2 Req 3 Indicate any amounts that Cox Corp. would have included in its March 2019 quarterly balance sheet related to the futures contract Balance Sheet (partial) Current assets: Futures contract Equity: Accumulated OCI Req 1 Req 3 > 2 3 4 5 April 1, 2019: Record the purchase of copper inventory. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 April 1, 2019: Record settlement of the futures contract. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 May 15, 2019: Record the sale of the completed products Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general journal 2 3 4 May 15, 2019: Record the cost of inventory sold. Note: Enter debits before credits. Event General Journal Debit Credit 4 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 May 15, 2019: Record any reclassification entry needed in relation to the futures contract. Note: Enter debits before credits. Event General Journal Debit Credit 5
