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1) July 1, 20X5 Record the entry for the 120-day forward contract signed for the forecasted foregin currency transaction.

2) Aug. 30th, 20x5 Record the revaluation of the foreign currency.

3) Aug. 30th, 20x5 Record the gain or loss on the financial instrument aspect of the firm commitment.

4) Aug. 30th, 20x5 Record the acquisition of the equipment.

1. On March 1, Maple sold goods to a Canadian company for C$44,000, receivable on May 30. The spot rates for Canadian dollars were C$1= $0.65 on March 1 and C$1= $0.68 on May 30. 2. On July 1, Maple signed a contract to purchase equipment from a Japanese company for 470,000. The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with payment due in 60 days on October 29. The spot rates for yen were 1- $0.102 on July 1, 1 = $0.104 on August 30, and 1= $0.106 on October 29. The 60-day forward exchange rate on August 30, 20X5, was 1= $0.1055. 3. On November 16, Maple purchased inventory from a London company for 24,000, payable on January 15, 20X6. The spot rates for pounds were 1 $1.65 on November 16, 1= $1.63 on December 31, and 1 $1.64 on January 15, 20X6. The forward rate on December 31, 20X5, for a January 15, 20X6, exchange was 1 = $1.645. Part II Assume that Maple used forward contracts to manage the foreign currency risks of all of its export and import transactions during 20X5. 1. On March 1, 20X5, Maple, anticipating a weaker Canadian dollar on the May 30, 20X5, settlement date, entered into a 90-day forward contract to sell C$44,000 at a forward exchange rate of C$1= $0.64. The forward contract was not designated as a hedge. 2. On July 1, 20X5, Maple, anticipating a strengthening of the yen on the October 29, 20X5, settlement date, entered into a 120-day forward contract to purchase 470,000 at a forward exchange rate of 1- $0.105. The forward contract was designated as a fair value hedge of a firm commitment. 3. On November 16, 20X5, Maple, anticipating a strengthening of the pound on the January 15, 20X6, settlement date, entered into a 60-day undesignated forward exchange contract to purchase 24,000 at a forward exchange rate of 1 = $1.67. Required: Prepare journal entries to record Maple's foreign currency activities during 20X5 and 20X6. (If no entry is required for a particular transaction select "No journal entry required" in the first account field.)