On January 1st,20x12,ABC Inc.agrees to a futures contract to buy 1,000 shares of DEF Inc.for $20 per share in 60 days.The current value of the shares on January 1,20x12 is $22 per share.
The broker requires a 20% margin payment.The fair value of the shares is $24 per share on January 31st,20x12 and $18 per share on February 29th,20x12.
Required: Prepare all relevant journal entries.
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