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A Company Pays $5,000 to Purchase Futures Contracts to Buy

Question 36

Essay

A company pays $5,000 to purchase futures contracts to buy 50 oz of silver at $40/oz.At the company's year-end,the price of silver rose and the value of the company's futures contracts increased to $6,000.
Requirement:
Record the journal entries related to these futures.

Correct Answer:

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