三、HartGoli'Co. uses Lilanium in llie production of ils specialty drivers. Mart anlicipales thal it will need lo purchase 200 ounces of titanium in November 2007, for clubs that will be shipped in Ihe spring and summer of 2008. However, if the price of titanium increases, this will increase the cost lo produce the clubs, which will result in lower profit margins. To hedge the risk of increased titanium prices, on May 1, 2007, Hart enters into a titanium futures contract and designates this futures contract as a cash flow hedge of the anticipaled titanium purchase. The notional amount of the contract is 200 ounces^ and the lerms of the contracl give Harl Ihe option to purchase titanium at a price of $500 per ounce. The price will be good until the conlract expires on November 30, 2007. Assume Ihe following data with respect to the price of ihe call oplions and Ihe tilanium invenlory purchase. fnsfrucfbns: (20 分） Piesent the journal entries for the following dates/ transactions.
(a)May 1, 2007 -- Inception of fuUires contract, no premium paid.