Matt Co. forecasted on December 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 the 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 machine delivery and payment, for $1.18 per euro. The company ends its fiscal year on December 31. The following exchange rates were quoted:

Date

Spot Rate. (Delivery on 3/1/2020)

12/1/2019. 1.17. 1.18

12/31/2019. 1.21 1.20

3/1/2020 1.15

A. Prepare all journal entries relative to the above event on December 1, 2019

B. Prepare all journal entries relative to the above event on December 31, 2019

C. Prepare all journal entries relative to the above event on March 1, 2020.