(Foreign Currency Transactions) Forest Green Incorporated, a U.S. based importer and provider of solar cells used to sustain apartment and home gardens, placed an order with a South African supplier for 200,000 thin solar cells at a cost of 2,000,000 rand. Relevant exchange rates for the rand are as follows:

Date	Spot Rate	Forward Rate to January 31, 2015	Call Option Premium for January 31, 2016 (Strike Price $0.70)
October 1, 2015	$0.70	$0.80	$0.030
October 31, 2015	$0.72	$0.82	$0.050
November 30, 2015	$0.76	$0.86	$0.070
December 31, 2015	$0.79	$0.88	$0.075
January 31, 2016	$0.81	$0.90	$0.095

Forest Green has an annual borrowing rate of 12 percent. The organization prepares monthly financial statements and plans to pay the 2,000,000 South African rand on January 31, 2016.

1.) On October 1, 2015 Forest Green Incorporated ordered 200,000 thin solar cells, which do not arrive until January 31, 2016. On October 1, 2015 Forest Green Incorporated also purchased a 4-month call option for 2,000,000 rand. Forest Green designated the call option as a fair value hedge of a firm commitment. Prepare the journal entry(s) to account for the foreign currency option entered into on October 1, 2015.

2.) On October 31, 2015 Forest Green Incorporated requires journal entries be made to ensure that the monthly financial statements are both accurate and complete. Prepare the necessary journal entry(s) on October 31, 2015 to account for the foreign currency option and firm commitment.

3.) On November 30, 2015 Forest Green Incorporated requires journal entries be made to ensure that the monthly financial statements are both accurate and complete. Prepare the necessary journal entry(s) on November 30, 2015 to account for the foreign currency option and firm commitment.

4.) On December 31, 2015 Forest Green Incorporated requires journal entries be made to ensure that the monthly financial statements are both accurate and complete. Prepare the necessary journal entry(s) on December 31, 2015 to account for the foreign currency option and firm commitment.

5.) On January 31, 2016 Forest Green Incorporated requires journal entries be made to ensure that the monthly financial statements are both accurate and complete. Prepare the necessary journal entry(s) on January 31, 2016 to account for the foreign currency contract, firm commitment, payment and receipt of goods on January 1, 2016.