Rex Corporation, a U ?
Required:
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Prepare the Journal Entries Needed to Properly

Essay

Rex Corporation, a U.S.firm with a calendar accounting year, agreed to buy a specially made truck from a Japanese firm for delivery on February 28, 2017 with payment due on that date.On the same date the agreement was signed, November 1, 2016, a forward contract due on February 28, 2017, was also signed to purchase 1,000,000 yen, the contract price of the truck.Exchange rates were as follows:
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Discount rate = 8%
$$\begin{array} { l c c } \text { Date } & \text { Spot Rate } & \text { Forward Rate } \\\hline 11 / 1 / 16 & \$ 0.0076 & \$ 0.0078 \\12 / 31 / 16 & \$ 0.0081 & \$ 0.0080 \\2 / 28 / 17 & \$ 0.0085 & \$ 0.0085\end{array}$$ ?
Required:
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Prepare the journal entries needed to properly reflect the purchase and forward contract through the end of the fiscal year.