Nick Andros of Streamline suggested that the company speculate in foreign currency as a partial hedge against its operations in the cattle market, which fluctuates like a commodity market. On October 1, 20X1. Streamline bought a 180-day forward contract to purchase \(50,000,000\) yen ( \(¥\) ) at a forward rate of \(¥ 1=\$ .0075\) when the spot rate was \(\$ .0070\). Other exchange rates were as follows:

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a. Prepare all journal entries related to Streamline Company's foreign currency speculation from October 1, 20X1, through March 31, 20X2, assuming the fiscal year ends on December 31, \(20 \mathrm{X} 1\).

b. Did Streamline Company gain or lose on its purchase of the forward contract? Explain.

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Date December 31, 20X1 March 31, 20X2 Spot Rate $.0073 .0072 Forward Rate for March 31, 20X2 $.0076