a public company listed on the Australian Securities Exchange (ASX). It complies with the requirements of AASB 9 ‘Financial Instruments’, AASB 132 ‘Financial Instruments: Disclosure and Presentation and AASB 7 ‘Financial Instruments: Disclosures’. Data relating to Marcoola Ltd’s financial instruments have been extracted from its financial statements and are provided below. On 1 April 2021, Marcoola Ltd sold 12 All Ordinaries Share Price Index (SPI) futures contracts for speculative purposes. Marcoola Ltd paid an initial cash deposit of $75,000. The futures broker allowed a $1,800 decrease in value of the SPI futures contracts before making margin calls. Marcoola Ltd has a 31 May reporting date. On 1 June 2021, the SPI futures contracts were closed out. The following market price data are available. 2021: 1 April 31 May 1 June Market value of shares $435,000 $439,680 $417,000 2021 SPI futures price 1,322 1,330 1,
Marcoola Ltd is a public company listed on the Australian Securities Exchange (ASX). It complies with the requirements of AASB 9 ‘Financial Instruments’, AASB 132 ‘Financial Instruments: Disclosure and Presentation and AASB 7 ‘Financial Instruments: Disclosures’.
Data relating to Marcoola Ltd’s financial instruments have been extracted from its financial statements and are provided below.
On 1 April 2021, Marcoola Ltd sold 12 All Ordinaries Share Price Index (SPI) futures contracts for speculative purposes. Marcoola Ltd paid an initial cash deposit of $75,000. The futures broker allowed a $1,800 decrease in value of the SPI futures contracts before making margin calls. Marcoola Ltd has a 31 May reporting date. On 1 June 2021, the SPI futures contracts were closed out. The following market price data are available.
| 2021: | 1 April | 31 May | 1 June |
| Market value of shares | $435,000 | $439,680 | $417,000 |
| 2021 SPI futures price | 1,322 | 1,330 | 1,265 |
| Market price (SPI futures price x 12 x $25) |
$396,600 | $399,000 | $379,500 |
REQUIRED:
Record these events and transactions in the books of Marcoola Ltd. (Show all working and provide any explanations necessary to support your answer).
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