Snackums, Incorporated, purchases wheat for use in its food manufacturing process. Snackums operates in a highly competitive industry and is rarely able to increase its sales price. On January 1, 2024, Snackums estimates that it only has enough wheat inventory to meet its manufacturing needs for the first half of 2024, and forecasts the purchase of 20,000 bushels of wheat on June 30, 2024, from its supplier, Trigo Farms. Because Snackums is concerned that the price of wheat will increase during the coming months it enters into four June wheat futures contracts on January 1, 2024, to purchase wheat. Each futures contract is based on the purchase of 5,000 bushels of wheat at $6.73 per bushel on June 30, 2024, and will settle in cash at maturity. (For purposes of this problem, the current spot price is also $6.73 per bushel.) The company must report changes in the fair value of its hedging instruments each quarter. The fair value of the futures contract at inception is zero. Snackums designates the futures contract as a hedge of the variability of cash flows attributed to changes in the spot price of wheat for its forecasted purchase of wheat. Since the critical terms of the forward contract and the forecasted purchase are exactly the same, Snackums concludes that the hedging relationship is expected to be 100% effective. Date Price for June 30, 2024 Delivery(per bushel) January 1, 2024 $6.73 March 31, 2024 Prepare the journal entries for the period January 1 to June 30, 2024, to record the forecasted purchase transaction, necessary adjustment for changes in the fair value of the futures contract, and settlement of the contract. Assume that Snackums purchases the wheat inventory from Trigo Farms on June 30, 2024, as anticipated. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries for the period January 1 to June 30, 2024, to record the forecasted purchase transaction, necessary adjustment for changes in the fair value of the futures contract, and settlement of the contract. Assume that Snackums purchases the wheat inventory from Trigo Farms on June 30, 2024, as anticipated. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Date 01/01/2024 General Journal Inventory-wheat Cash 2 03/31/2024 Futures contract-wheat Cost of goods sold 3 06/30/2024 Futures contract-wheat Cost of goods sold 4 06/30/2024 Cash Futures contract - wheat 5 06/30/2024 Inventory - wheat Futures contract-wheat Cash < Required 1 Required 3 > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Show less▲ Debit 134,600 Credit 134,600 800 800 2,600 2,600 3,400 3,400 134,600 x 3,400 138,000