On September 1, 2020, Pronghorn entered into a future contract to sell US $100,000 for CDN $1.20, which was the market value on September 1. The broker with whom Pronghorn arranged the contract required a 10% deposit, which Pronghorn paid in cash. On December 31, Pronghorns year-end, the price per $US was CDN $1.25. On January 1, Pronghorn closed out the contract at the same exchange rate, settling without delivering the cash.

Prepare the journal entries to record 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 0 for the amounts.)

a.

(To record loss on derivative.)

b.

(To record additional deposit.)

c.

(To close out derivative contract.)