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Given the recent volatility in the market, company decided to enter into a futures contract to lock in the price of milk on April 1.
Given the recent volatility in the market, company decided to enter into a futures contract to lock in the price of milk on April 1. The contract is traded on the Chicago Mercantile Exchange, under the symbol DC, and is for the standard contract size of 200,000 lbs. The contract was entered into at a price of $21.22 per hundredweight. As of year-end, milk was trading at $19.54 per hundredweight. Company has not recognized this futures contract in the accounts. What is the journal entry?
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