Carla is a Canadian company that conducts many transactions in $US. Because the price of $US fluctuates daily, Carla often enters into futures contracts as a way to manage risk. On September 1, 2020, Carla entered into a future contract to sell US $96,000 for CDN $1.15, which was the market value on September 1. The broker with whom Carla arranged the contract required a 15% deposit, which Carla paid in cash. On December 31, Carlas year-end, the price per $US was CDN $1.20. On January 1, Carla closed out the contract at the same exchange rate, settling without delivering the cash.

Prepare the journal entries to record the futures contract. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit Sept. 1, 2020 Dec 31, 2020 (To record loss on derivative.) (To record additional deposit.) Jan. 1, 2021 (To close out derivative contract.)