Question 23 (10 points) On October 5, 2020, Kappa Cloth Ltd. enters into a forward contract to purchase 10,000 metres of cotton fabric at $ 1 per metre, good until February 1, 2021. On December 31, 2020, the forward price for February 2021 delivery of cotton fabric has increased to $ 1.06 per metre and the forward value was $600. On February 1, 2021, Kappa settled forward contract while the cotton fabric price was $1.07. 1. Prepare journal entry, if necessary, to record the commencement of the forward contract on Oct 5, 2020. 2. Prepare journal entry to record necessary adjustment on December 31, 2020, the fiscal year end. 3. Prepare journal entry to record the settlement of the contract on February 1, 2021 assuming Kappa settled net in cash 4. Had Kappa settled the contract on February 1, 2021 by accepting the delivery of the cotton fabric instead, what would be the proper journal entry