McDonald's Corporation has franchises operating outside the U.S. and invests in derivatives to hedge its foreign currency risk. Assume that McDonald's finds itself with the following unhedged forward contracts at December 16, 2022.

• Agreement to purchase 10,000,000 Philippine pesos () in 30 days at $0.020/.
• Agreement to sell 10,000,000 Singapore dollars (S$) in 30 days at $0.74/S$.

Relevant exchange rates are:

30-day forward rates at December 16, 2022	$0.018/	$0.734/S$
15-day forward rates at December 31, 2022	0.019/	0.742/S$
Spot rates at January 15, 2023	0.022/	0.736/S$

(b) Prepare the journal entries made by McDonald's on December 31, 2022, and January 15, 2023, assuming that the balances of the forward contracts are properly stated at December 16, 2022, and that the company closes its books on December 31.