On November 1, 2016, a U ?
Required:
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Make All the Necessary Journal Entries for Foreign

Essay

On November 1, 2016, a U.S.company purchased inventory from a foreign supplier for 100,000 FC, with payment to be made on January 31, 2017, in FC.To hedge against fluctuations in exchange rates, the firm entered into a forward exchange contract on November 1 to purchase 100,000 FC on January 31, 2017.The U.S.firm has a December 31 year end for accounting purposes.The following exchange rates may apply:
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Discount rate = 12%
$$\begin{array} { l c c } \text { Date } & \text { Spot Rate } & \text { Fwd. Rate } \\\hline 11 / 1 / 16 & \$ 0.15 & \$ 0.13 \\12 / 31 / 16 & \$ 0.16 & \$ 0.14 \\1 / 31 / 17 & \$ 0.165 & \$ 0.165\end{array}$$ ?
Required:
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Make all the necessary journal entries for the U.S.firm relative to these events occurring between November 1, 2016, and January 31, 2017.