Merit & Family purchased engines from Canada for 34,000 Canadian dollars on March 10 with payment due on June 8. Also, on March 10, Merit acquired a 90-day forward contract to purchase 34,000 Canadian dollars at C$1 = $0.50. The forward contract was acquired to manage Merit & Familys exposed net liability position in Canadian dollars, but it was not designated as a hedge. The spot rates were

March 10	C$1	=	$	0.49
June 8	C$1	=	$	0.52

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. (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 broker.

7 Record the settlement of the foreign currency payable.