On $1$ April $2021,xYZ$ Ltd enters into a forward exchange contract to sell US $$500,000$ on $1$ August, $2021.$

The forward contract is designated as a hedge for a sales transaction of US $$500,000$ that $xYZ$ Ltd expects

to have with a customer in the USA on $1$ August $2021.$ Based on past experience, the sales transaction is

highly probably.

Assume a discount rate of $0\%$ on present value calculations to simplify the question.

Relevant exchange rates are as follows:

A$.$ Prepare the required journal entry at $30$ June $2021$ for $xYZ$ Ltd

B$.$ Prepare the required journal entries at $1$ August $2021$ for $xYZ$ Ltd