14 On 1 March 2014 Possum plc, an entity located in Luxembourg, purchases 1.5 million of inventory from Liverpool plc, a UK entity. The amount is payable on 1 August 2014. A forward-exchange contract for the delivery of 1 million is taken out with The Bank on 1 May 2014. It requires delivery of the foreign currency to Possum plc on 1 August 2014. Possum plc has a 30 June financial year end. LO 24.3 Additional information Date Spot rate Forward rate 01 March 2014 0.70 01 May 2014 0.75 30 June 2014 0.72 01 August 2014 0.70 0.73 0.70 0.70 Prepare the journal entries for Possum plc to account for the above transaction.