Valix Finacc vol 1 Problem 14-14

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 14-14

   2008

Dec. 31   Futures contract receivable                                               1,500,000

                      Unrealized gain – futures contract (100,000 x 15)                               1,500,000

   2009

Jan.   1   Purchases                                                                            6,500,000

                      Cash (100,000 x 65)                                                                             6,500,000

          1   Cash                                                                                   1,500,000

                      Futures contract receivable                                                              1,500,000

          1   Unrealized gain – futures contract                                     1,500,000

                      Gain on futures contract                                                                   1,500,000