Duck Corporation forecasted on December 21, 2017 to sell a machine to a company in Italy. The selling price was 500,000 euros, to be paid on March 21, 2018. To hedge against fluctuations in the exchange rate, Duck entered into a forward contract on Dec. 21, 2017 to sell 500,000 euros on March 21, 2018, the agreed date of machine delivery, for $1.227 per euro. The company ends its fiscal year on December 31. The following exchange rates were quoted:

		Forward Rate
Date	Spot Rate	(Delivery on 3/21/2017)
12/21/2017	1.228	1.227
12/31/2017	1.222	1.221
3/21/2018	1.225	-----

Notes: Read carefully and follow strictly so that Bb can grade you correctly! 1. Use comma in numbers, one thousand is 1,000, not 1000. Round to the nearest dollar: 1,000.45 should be 1,000, and 1,000.55 should be 1,001, no decimal points. No $ sign. 2. If no entry is required, write N/A. 3. Only use the following accounts: Inventory, A/P (FC), A/R (FC), Cash, Sales, CGS, Exchange G/L, Fwd Contract, Contract G/L, Contract G/L (OCI), Firm CMMT, CMMT G/L. 4. Copy account names accurately to receive credits, names are not case sensitive. 5. Remember: do ALL buy/sell transaction entries first, then financing management entries later.

Required:

A. Prepare all journal entries relative to the above event on December 21, 2017.

Buy/Sell Account Dr. Account Cr.

Financing Account Dr. Account Cr.

B. Prepare all journal entries relative to the above event on December 31, 2017.

Buy/Sell

Account Dr. Account Cr.

Financing Account Dr. Account Cr.

C. Prepare all journal entries relative to the above event on March 21, 2018.

Buy/Sell Account Dr. Account Cr. Account Dr. Account Cr. Financing

Account Dr. Account Cr. Account Dr. Account Cr.