6 Record purchase of foreign currency for settling the accounts payable. 7 Record purchase of inventory from the German supplier. 8 Record the transfer of inventory to cost of goods sold. 9 Record the adjustment of cost of goods sold to the extent of firm commitment. Journal entry worksheet 8 Record the transfer of exchange gain or loss to firm commitment. Note: Enter debits before credits. 1 Record the gain or loss on the foreign currency euro call option with a premium of $0.050 per Euro at a strike price of $1.55 and an exercise date of October 15 . 2 Record the gain or loss on the foreign currency euro call option with a premium of $0.060. 3 Record the transfer of exchange gain or loss to firm commitment. 4 Record the entry for changes in the fair value of Euro call option. 5 Record the transfer of exchange gain or loss to firm commitment. Journal entry worksheet Record the gain or loss on the foreign currency euro call option with a premium of $0.060. Note: Enter debits before credits. Record the gain or loss on the foreign currency euro call option with a premium of $0.050 per Euro at a strike price of $1.55 and an exercise date of October 15. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15. On August 15 , the company purchased a two-month call option on 620,000 euros. The company designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)