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

Essay

Wolters Corporation is a U.S.corporation that purchased 50,000 chocolate bars from a foreign manufacturer on March 1, 2024 for 80,000 foreign currency units, to be paid on April 30, 2024.On March 1, 2024 Wolters also entered into a forward contract to purchase 80,000 foreign currency units on April 30, 2024.Wolters has a March 31 year end.
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Exchange rates are as follows:
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$$\begin{array} { l c c } \text { Date } & \text { Spot Rate } & \text { Forward Rate } \\\hline 3 / 1 / 24 & \$ 0.69 & \$ 0.65 \\3 / 31 / 24 & \$ 0.61 & \$ 0.63 \\4 / 30 / 24 & \$ 0.66 & \$ 0.66\end{array}$$ Required:
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Prepare the journal entries to record the transactions through April 30, 2024.March 31 is the fiscal period end.Ignore the split between spot gain/loss and time value.