Problem 17-16 Kingbird Jewelry Co. uses gold in the manufacture of its products. Kingbird anticipates that it will need to purchase 460 ounces of gold in October 2017, for jewelry that will be shipped for the holiday shopping season. However, if the price of gold increases, Kingbird's cost to produce its jewelry will increase, which would reduce its profit margins. To hedge the risk of increased gold prices, on April 1, 2017, Kingbird enters into a gold futures contract and designates this futures contract as a cash flow hedge of the anticipated gold purchase. The notional amount of the contract is 460 ounces, and the terms of the contract give kingbird the right and the obligation to purchase gold at a price of $270 per ounce. The price will be good until the contract expires on October 31, 2017. Assume the following data with respect to the price of the futures contract and the gold inventory purchase. Date Spot Price for October Delivery April 1, 2017 June 30, 2017 September 30, 2017 $270 per ounce 279 per ounce 284 per ounce Prepare the journal entries for the following transactions. (a) April 1, 2017-Inception of the futures contract, no premium paid. (b) June 30, 2017-Kingbird Co. prepares financial statements (e) September 30, 2017-Kingbird Co. prepares financial statements (a) October 10, 2017-Kingbird Co. purchases 460 ounces of gold at $284 per ounce and settles the futures contract. (e) December 20, 2017-Kingbird selis jewelry containing gold purchased in October 2017 for $352,800. The cost of the finished goods inventory is $181,000. (Credit for the account titles and enter 0 for the amounts.) automatically Indented when amount is entered. Do not indent manually, If no entry ls required, select "No Entry