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Accounts Payable Accounts Receivable Cash Cost of Goods Sold Dollars Payable to Exchange Dealer Dollars Receivable from Exchange Dealer Equipment FC Contract FCPayable to Exchange

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Accounts Payable Accounts Receivable Cash Cost of Goods Sold Dollars Payable to Exchange Dealer Dollars Receivable from Exchange Dealer Equipment FC Contract FCPayable to Exchange Dealer FC Receivable from Exchange Dealer Firm Commitment On October 1,2024, Sandhill Corporation ordered some equipment from a supplier for 318,000 euros. Delivery and payment are to occur on November 15, 2024. The spot rates on October 1 and November 15, 2024, are $1.20 and $1.30, respectively. (a) Assume that Sandhill entered into a forward contract on October 1,2024, to hedge the firm commitment. The forward rates for euros for November 15 delivery were Furthermore, assume the equipment was purchased and paid for on November 15. Prepare all journal entries needed to record and settle the hedge and to record the purchase of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manualix. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) \begin{tabular}{|c|c|c|c|} \hline Date & Account Titles and Explanation & Debit & Credit \\ \hline \multirow[t]{2}{*}{ Oct 1 } & Equipment & 318000 & \\ \hline & Accounts Paysble & & 318 \\ \hline \multirow[t]{3}{*}{ Nov 15i2} & & I 22260 & \\ \hline & & & 22 \\ \hline & (To record gain or loss on foreign currency) & & \\ \hline \multirow[t]{2}{*}{ Non 15} & & 22260 & \\ \hline & & & 22: \\ \hline \end{tabular} (To record gain or loss on firm commitment) Foreign Exchange Contract Foreign Exchange Gain Foreign Exchange Gain-Other Comprehensive Income Foreign Exchange Loss Foreign Exchange Loss-Other Comprehensive Income Interest Expense Inventory Investment in FC No Entry Note Payable Option to Buy FC Option to Sell Francs Option to Sell Kronas Payable to Option Trader Purchases Realized Gain Realized Loss Revenues Sales Service Revenue Transaction Gain Transaction Loss Now.15 Equigment 318000 Accounts Payble Accounes Paysbie (To record payment to exchange dealer and receipt of foreign currency) Nov.15 *

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