On December 1, 2017, Sizzler Foods, a U.S. company, purchased merchandise from a Hong Kong supplier at a price of HK\($10,000,000,\) payable in three months in Hong Kong dollars. To hedge its exposed liability position, Sizzler entered a forward contract for purchase of HK\($10,000,000\) on March 1, 2018. On March 1, Sizzler closed the forward contract and used the Hong Kong dollars to pay its supplier. Sizzler's accounting year ends January 31.

Exchange rates (\($/HK$)\) are as follows:

Required 

Prepare the journal entries Sizzler Foods made on December 1, 2017 and March 1, 2018 to record the above transactions, as well as its end-of-year adjusting entries on January 31, 2018.

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December 1, 2017. January 31, 2018. March 1, 2018 Spot rate $0.1289 0.1299 0.1303 Forward rate for delivery March 1, 2018 $0.1293 0.1304