Prepare the entry to record change in the value of contract

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In an independent scenario: On August 25, 2020, Mariners Inc. entered into a forward contract to buy 25,000 Krubles (KRB) for $ 3,800 Canadian (CAD), to be delivered September 15, 2020. On August 31, 2020, 25,000 KRB can be purchased for $3,500 (CAD). On September 15, Beta settles the contract and takes delivery of the 25,000 KRB for $3,750 (CAD).

Problem a) Prepare any entry necessary to record entering to this forward contract.

Problem b) Prepare the entry to record the change in the value of the contract on August 31, 202.

Problem c) Prepare the entry to record the settlement of the contract on the settlement day.

Reference no: EM132937086

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