JoCo Co. entered into a futures contract to purchase rubber on September 1, Year 1, to hedge an expected purchase of 500 tons of rubber in January Year 2. This cash flow hedge of a forecasted transaction gives JoCo the right and the obligation to purchase 500 tons of the material for $1,250 per ton. The contract expires on January 29, Year 2. The spot price on September 1, Year 1, was $1,250 per ton (the contract price). At December 31, Year 1, the balance sheet date, the price for the upcoming January delivery of rubber had increased to $1,325 per ton. On January 29, Year 2, JoCo purchased 500 tons of the material for $1,325 per ton and settled the contract. Assume no margin deposit was required. Ignore inventory transaction entries for the purpose of this exercise. To prepare each required journal entry related to the futures contract: • Click on a cell in the Account Name column and select from the option list the appropriate account. An account may be used once, more than once, or not at all. • Enter the corresponding debit or credit amount in the associated column. • Round all amounts to the nearest whole number. • Not all rows in the table might be needed to complete each journal entry. • If no journal entry is needed, check the "No entry required" box at the top of the table as your response. 1. Record the journal entries for September 1, Year 1, if any.
2. Record the journal entries for December 31, Year 1, if any.
3. Record the journal entries for January 29, Year 2, if any.

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event. inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded. required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)