Given: On January 2, 2019, Abalone Inc. agrees to buy $1,000 in U.S. currency for $1,150 in Canadian currency in 30 days from Bond Bank Abalone has the right to any increases in value of the underlying (U.S. dollars), and an obligation exists to pay a fixed amount of $1,150 by a specified date This forward contract transfers the currency risk inherent in the Canada-U.S. exchange rate Upon inception, the value of the contract is zero so no journal entry would be recorded Required: 1)Prepare the journal entry If the fair value of the contract is $50, on January 5, 2019 2) Pepare the journal entry if on January 31, 2019 the fair value of the contract now creates an overall loss of $30