Hart Golf Co. uses titanium in the production of its specialty drivers. Hart anticipates that it will need to purchase 388 ounces of titanium in October 2010, for clubs that will be shipped in the holiday shopping season. However, if the price of titanium increases, this will increase the cost to produce the clubs, which will result in lower profit margins. To hedge the risk of increased titanium prices, on May 1, 2010, Hart enters into a titanium futures contract and designates this futures contract as a cash flow hedge of the anticipated titanium purchase. The notional amount of the contract is 388 ounces, and the terms of the contract give Hart the option to purchase titanium at a price of $970 per ounce. The price will be good until the contract expires on November 30, 2010. Assume the following data with respect to the price of the call options and the titanium inventory purchase. Date Spot Price for Date November Delivery May 1, 2010 $970 per ounce June 30, 2010 1,009 per ounce September 30, 2011 1,019 per ounce Present the journal entries for the following dates/transactions A. May 1, 2010Inception of futures contract, no premium paid. B. June 30, 2010Hart prepares financial statements C. September 30, 2010Hart prepares financial statements. D. October 5, 2010Hart purchases 200 ounces of titanium at $1,019 per ounce and settles the futures contract. E. December 15, 2010Hart sells clubs containing titanium purchased in October 2010 for $485,000. The cost of the finished goods inventory is $271,600. F. Indicate the amount(s) reported in the income statement related to the futures contract and the inventory transactions on December 31, 2010. Sales Revenue $ Cost of Goods Sold Gross Profit $