On December 15th,2018,Hammer Paid $20,000 to Purchase a Futures Contract

Essay

On December 15th,2018,Hammer paid $20,000 to purchase a futures contract that entitles the company to buy US$1 million at a cost of C$1.04 million on March 15,2019.On December 31st ,Hammer's year-end,the exchange rate is US$1:C$1.09.
Required:
Record the journal entry for (a)the purchase of the futures contract and (b)at year-end.