Ivan has 14,000 barrels of oil that were purchased a month ago at $50.00 per barrel.On November 1,2011 Ivan hedges the value of the inventory by entering into a forward contract to sell 14,000 barrels of oil on January 31,2012 for $60.00 per barrel.The forward contract is to be settled net.
Assume this is a fair value hedge.
Required:
Assume a 6% discount rate is reasonable,and using a mixed-attribute model,prepare the journal entries to account for this hedge at the following dates:

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The Answer of Ivan has 14,000 barrels of oil that were purchased a month ago at $50.00 per barrel.On November 1,2011 Ivan hedges the value of the inventory by entering into a forward contract to sell 14,000 barrels of oil on January 31,2012 for $60.00 per barrel.The forward contract is to be settled net.
Assume this is a fair value hedge.
Required:
Assume a 6% discount rate is reasonable,and using a mixed-attribute model,prepare the journal entries to account for this hedge at the following dates:

Ivan Has 14,000 Barrels of Oil That Were Purchased a Month