Wolters Corporation Is a U Required:
Prepare the Journal Entries to Record the Transactions Through

Essay

Wolters Corporation is a U.S. corporation that purchased 50,000 chocolate bars from a foreign manufacturer on March 1, 20X9 for 80,000 foreign currency units, to be paid on April 30, 20X9. On March 1, 20X9 Wolters also entered into a forward contract to purchase 80,000 foreign currency units on April 30, 20X9. Wolters has a December 31 year end.
Exchange rates are as follows:
$$\begin{array} { l c c } \text { Date } & \text { Spot Rate } & \text { Forward Rate } \\\hline 3 / 1 / \mathrm { X } 9 & \$ 0.69 & \$ 0.65 \\3 / 31 / \mathrm { X } 9 & \$ 0.61 & \$ 0.65 \\4 / 30 / \mathrm { X } 9 & \$ 0.66 & \$ 0.66\end{array}$$ Required:
Prepare the journal entries to record the transactions through April 30, 20X9. March 31 is NOT a fiscal period end. Ignore the split between spot gain/loss and time value.