Lamont Company is a Canadian company that produces electronic switches for the telecommunications industry. Lamont regularly imports component parts from Sousa Ltd., a supplier located in Mexico, and makes payments in Mexican pesos (MXN/Mex). Based on past experience, Lamont Company expects to purchase raw materials from Sousa at a cost of Mex18,000,000 on March 1, Year 2. To hedge this forecasted transaction, Lamont enters into a four-month forward contract on October 31, Year 1 to purchase 18 million pesos on March 1, Year 2. It appropriately designates the forward contract as a cash flow hedge of the Mexican peso liability exposure. On March 1, Year 2, the forward contract is settled with the bank and Sousa is paid for delivering the goods to Lamont. The following spot and forward exchange rates exist during the period October to March: October 31, Year 1 December 31, Year 1 March 1, Year 2 Spot Rates Forward Rates Mext $0.109 Mexi 50.110. 50.112 Mext 30.196. Mext = $0.198 Mex "For contracts expiring on March 1. Year 2. Required: (a) Prepare all journal entries (using net method) required to record the transactions described above. (Enter your answers in whole dollars and not in millions. In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "O" wherever required.) Date October 31, Year 1 Purchase (Click to select) General Journal Record the forward contract. December 31, Year 1 (Click to select) (Click to select) Debit Credit 1908000 1908000 Prev 1 of 2 Next >