Nick Andros of Streamline Company suggested that the company speculate in foreign currency as a partial hedge against its operations in the cattle market, which fluctuates like a commodity market. On October 1, 20X1, Streamline bought a 180-day forward contract to purchase 50,000,000 yen () at a forward rate of 1 = $0.0075 when the spot rate was $0.0070. Other exchange rates were as follows:

Date	Spot Rate	Forward Rate for March 31, 20X2
December 31, 20X1	$ 0.0073	$ 0.0076
March 31, 20X2	0.0072

Required:

Prepare all journal entries related to Streamline Companys foreign currency speculation from October 1, 20X1, through March 31, 20X2, assuming the fiscal year ends on December 31, 20X1.

Did Streamline Company gain or lose on its purchase of the forward contract?

Did Streamline Company gain or lose on its purchase of the forward contract?

Journal entry worksheet Record the entry for trading Japanese yen for dollars, at bank. Note: Enter debits before credits. Journal entry worksheet Record the receipt of Japanese yen from the exchange broker. Note: Enter debits before credits. Journal entry worksheet Record the delivery of U.S. dollars to an exchange broker. Note: Enter debits before credits. Journal entry worksheet Record the revaluation of the speculative forward contract to the current date, the end of the contract term, using the March 31 spot rate. Note: Enter debits before credits. Journal entry worksheet Record the revaluation of the speculative forward contract to the equivalent end-of-period U.S. dollar value using the forward rate. Note: Enter debits before credits. Journal entry worksheet Record the signing of 180 -day forward contract to receive 50,000,000 yen. Note: Enter debits before credits. Journal entry worksheet Record the entry for trading Japanese yen for dollars, at bank. Note: Enter debits before credits. Journal entry worksheet Record the receipt of Japanese yen from the exchange broker. Note: Enter debits before credits. Journal entry worksheet Record the delivery of U.S. dollars to an exchange broker. Note: Enter debits before credits. Journal entry worksheet Record the revaluation of the speculative forward contract to the current date, the end of the contract term, using the March 31 spot rate. Note: Enter debits before credits. Journal entry worksheet Record the revaluation of the speculative forward contract to the equivalent end-of-period U.S. dollar value using the forward rate. Note: Enter debits before credits. Journal entry worksheet Record the signing of 180 -day forward contract to receive 50,000,000 yen. Note: Enter debits before credits