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Please notice how there are a specific amount of entry accounts I need for each answer. Don't give me an answer with less accounts than
Please notice how there are a specific amount of entry accounts I need for each answer. Don't give me an answer with less accounts than the amount given
On January 1, 2020, Ivanhoe Inc. agrees to buy 3 kg of gold at $ 35,000 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 forward contract was zero. The fair value of the forward subsequently fluctuated as follows: Date Fair Value of Forward Contract January 20, 2020 $ 516 February 6, 2020 $ 124 February 28, 2020 $366 March 14, 2020 $ 880 On the settlement date, the spot price of gold is $ 36,000 per kilogram. Assume that Ivanhoe complies with IFRS. Prepare the journal entry for the day the forward 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 O for the amounts.) Date Account Titles and Explanation Debit Credit January 1, 2020 No Entry 0 No Entry 0 Prepare the journal entries to recognize the changes in the fair value of the forward 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 Ofor the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Cred Prepare the journal entry that would be required if Ivanhoe 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, 2020Step by Step Solution
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