Bartlett Company, headquartered in Cincinnati, Ohio, has occasional transactions with companies in a foreign country whose currency is the lira.

Transactions in 2015

February 1	Bought equipment for 42,000 lira on credit.
April 1	Paid for the equipment purchased February 1.
June 1	Bought inventory for 36,000 lira on credit.
August 1	Sold 70 percent of inventory purchased June 1 for 42,000 lira on credit.
October 1	Collected 31,500 lira from the sales made on August 1, 2015.
November 1	Paid 24,000 lira on the debts incurred on June 1, 2015.

Transactions in 2016

February 1	Collected remaining 10,500 lira from August 1, 2015, sales.
March 1	Paid remaining 12,000 lira on the debts incurred on June 1, 2015.

Currency exchange rates for 1 lira for 2015

February 1	$	0.36
April 1		0.37
June 1		0.39
August 1		0.40
October 1		0.41
November 1		0.42
December 31		0.44

Currency exchange rates for 1 lira for 2016

February 1	$	0.46
March 1		0.47

Prepare journal entries for the following transactions in U.S. dollars. Also prepare any necessary adjusting entries at December 31 caused by fluctuations in the value of the lira. Assume that the company uses a perpetual inventory system. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1.

Record the purchase of equipment.

2.

Record the payment for equipment purchased on February 1.

3.

Record the purchase of inventory.

4.

Record the sales.

5.

Record the cost of goods sold.

6.

Record the collection from accounts receivable.

7.

Record the payment for inventory purchased on June 1.

8.

Record the adjustment to the value of lira payable.

9.

Record the adjustment to the value of lira receivable.

10.

Record the remaining collection from August sales.

11.

Record the remaining payment for June purchase.