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.
Required:
Record the journal entries related to these futures.
Correct Answer:

Verified
Correct Answer:
Verified
Q23: What is a "hedge"?<br>A)A financial instrument that
Q33: What is a "swap"?<br>A)A contract in which
Q42: Which statement best describes the "zero common
Q44: Which is a derivative on the company's
Q58: Which method must be used under IFRS
Q60: Which statement best describes the "proportional method"?<br>A)Under
Q62: On August 15, 2021, Madison Company issued
Q64: On January 1, 2021, Gilmore Inc. granted
Q67: How should warrants on the company's own
Q79: What is a "future"?<br>A)A contract in which