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b. On January 1, 2019, a U.S. firm bought a truck from a foreign firm for 50,000 FC, to be paid on March 1 in
b. On January 1, 2019, a U.S. firm bought a truck from a foreign firm for 50,000 FC, to be paid on March 1 in FC. The spot rate was 1 FC = $1.25 on January 1 and 1 FC = $1.265 on March 1. To protect themselves from exchange rate changes, the U.S. firm entered into a forward exchange contract on January 1 to buy FC on March 1 for $1.28. Required: Make all the necessary journal entries to record the transactions for the U.S. firm on January 1 and March 1.
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