Merit & Family purchased engines from Canada for $30,000$ Canadian dollars on March $10$ with payment due on June $8.$ Also, on March

$10,$ Merit acquired a $90-$day forward contract to purchase $30,000$ Canadian dollars at $C$$$=$$$0\mathrm{.}58.$ The forward contract was acquired

to manage Merit & Family's exposed net liability position in Canadian dollars, but it was not designated as a hedge. The spot rates

were

Required:

Prepare journal entries for Merit & Family to record the purchase of the engines, entries associated with the forward contract, and

entries for the payment of the foreign currency payable.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$1$ Record the foreign purchase of the engines.

$2$ Record the entry for the $90-$day forward exchange

contract signed to receive Canadian dollars.

$3$ Record the entry to revalue the foreign currency

receivable to the current equivalent U$.$S$.$ dollar value.

$4$ Record the entry to revalue the foreign currency accounts

payable to the current U$.$S$.$ dollar value.

$5$ Record the payment of U$.$S$.$ dollars to an exchange

broker for the forward contract.

$6$ Record the receipt of Canadian dollars from the exchange

Note : $=$ journal entry has been entered