On $30$ November $2021,$ Systech Corporation entered into a non callable contract to buy $1,000$ shares of

the Fastrack Ltd for $$5,000$ on $31$ July $2022.$ On the same date, Systech corporation purchased a put

option on $1,000$ Fastrack Shares for $$500$ to hedge the risk in the fair value of the commitment. The

exercise price for the transaction was $5$$ per share. The put options expiration date was $31$ July $2022.$

Data on the price movements of the Fastrack shares and the put options are follows:

The Systech designated the options contract as a hedge of the risk changes in the fair value of the firm

commitment resulting from changes in the price of Fastrack shares. Systech excluded the time value of

the option contract from the hedging relationship. The Systech corporation closed the position on the

put option on $31$ July $2022,$ fulfilled its obligations under contract, and sold off its shares on the same

date. The Systech corporation year end is $30$ June $2022.$

Instructions:

Prepared the journal entries No $30$ November $2021,30$ June $2022$ and $31$ July $2022!$