Matt Co. "forecasted" on Dec. 1 2019 to buy a machine from a company in Italy. The cost was 700,000 euros, to be paid on March 1, 2020. To hedge against fluctuations in exchange rates, Matt entered into a forward contract on Dec. 1 2019 to buy 700,000 euros on March 1, 2020. The agreed date of the machine delivery and payment for $1.18 euro. The company ends its fiscal year on Dec. 31.

The following exchange rates were quoted:

Date	Spot Rate	Delivery 3/1/20
12/1/19	1.17	1.18
12/31/19	1.21	1.20
03/01/20	1.15	---

REMEMBER: Do ALL buy/sell transaction entries first, then financing management entries later.

ONLY use the following accounts: A/R (FC), A/P (FC), Cash, Inventory, Sales, COGS, Exchange G/L,FWD Contract, Contract G/L, Contract G/L (OCI), Firm CMMT, CMMT G/L

If no entry is required, write N/A.

REQUIRED:

Prepare all Journal Entries Relative to the event on Dec. 1, 2019.

Prepare all Journal Entries Relative to the event on Dec. 31, 2019.

Prepare all Journal Entries Relative to the event on Mar. 10, 2020.