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On January 1, 2020, Wildhorse Inc. agrees to buy 3 kg of gold at $42.000 per kilogram from Golden Corp on April 1, 2020, but

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On January 1, 2020, Wildhorse Inc. agrees to buy 3 kg of gold at $42.000 per kilogram from Golden Corp on April 1, 2020, but does not intend to take delivery of the gold. On the day that the contract was entered into the fair value of this futures contract that trades on the Futures Exchange was zero. On January 1, 2020, Wildhorse is required to deposit $65 with the stockbroker as a margin. The fair value of the futures subsequently fluctuated as follows: Date Fair Value of Futures Contract 5488 January 20, 2020 February 6, 2020 February 28, 2020 $121 $362 March 14.2020 $710 On the settlement date, the spot price of gold is $43,000 per kilogram Assume that Wildhorse complies with IFRS. Prepare the journal entry for the day the futures contract was signed. (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 for the amounts.) Date Account Titles and Explanation Debit Credit January 1, 2020 Prepare the journal entries to recognize the changes in the fair value of 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 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cr Prepare the journal entry that would be required if Wildhorse settled the contract on a net basis on April 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit April 1 2020

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