Chapter $7$ Homework

On November $1,2018,$ Turkey Corporation of the United States buys inventory from Gobble Ltd$.$

Of Canada for $90,000$ Canadian dollars to be paid on January $31,2019.$ Also on November $1,$

$2018,$ Turkey paid $$\mathrm{.}054$ per Canadian dollar for an option with a strike price of $$\mathrm{.}82.$ The

following spot rates and option premiums apply:

Turkey chooses to designate the option as a cash flow hedge of the foreign currency denominated sale.

Record all journal entries associated with these transactions and be sure to date the entries.