A U.S. company issues a purchase order on April 1 to buy merchandise from an Australian supplier for A$100,000, to be paid on August 1. To hedge the foreign exchange risk, on April 1 the U.S. company enters a forward purchase contract for A$100,000 with an August 1 delivery date. On May 1, the company takes delivery of the merchandise. On August 1 the company purchases the Australian dollars through the forward contract and pays the supplier. On August 15, the company sells the merchandise to a U.S. customer for $95,000 in cash. Assume the company records cost of goods sold when the sale is made. The companys fiscal year ends June 30. Relevant rates ($/A$) are as follows: Spot Rate Forward Rate for August 1 Delivery April 1 $0.776 $ 0.774 May 1 0.772 0.770 June 30 0.765 0.762 August 1 0.778 0.778

Required)

Make the journal entries to record the above events, including appropriate fiscal year-end adjusting entries. Please display your calculations for each journal entry.