On April 1, a British manufacturer enters into a commitment to sell equipment to a Us) importer for £100,000. The goods are to be delivered on April 1 and paid for on June 30.

a. Assuming that no forward contract is entered into, what would be the journal entries for the U.S. importer on April 1, April 30, May 31, and June 30?

b. Assuming that a forward contract is entered into on April 1, what would be the journal entries for the U.S. importer on April 1, April 30, May 31, and June 30?