Sheridan is a Canadian company that conducts many transactions in $ US$.$ Because the price of $US fluctuates daily, Sheridan often

enters into futures contracts as a way to manage risk.

On September $1,2023,$ Sheridan entered into a future contract to sell US $$101,000$ for CDN $$1\mathrm{.}20,$ which was the market value on

September $1.$ The broker with whom Sheridan arranged the contract required a $20\%$ deposit, which Sheridan paid in cash. On

December $31,$ Sheridan's year$-$end, the price per $US was CDN $$1\mathrm{.}25.$ On January $1,$ Sheridan closed out the contract at the same

exchange rate, settling without delivering the cash.

Prepare the journal entries to record the futures contract.