On 1 March Cooper Ltd sells to Koroibete (an overseas firm) USD 1,000,000 of sports equipment. The equipment is to be air freighted immediately (delivered 1 March) and payment is due on 1 August.

Cooper becomes concerned about exchange rate fluctuations and on 30 April puchases an option to sell USD 1,000,000 at an exchange rate 0.7300 for delivery on 1 August. Cooper pays $27,000 for the option at this time. At 30 June, the value of the option is $9,000.

The exchange rates over the period are:

1 March: AUD 1 = USD 0.7200

30 June: AUD 1 = USD 0.7050

1 August: AUD 1 = USD 0.7450

Prepare the journal entries for Cooper, including the year end adjustments at year end (30 June). Cooper does not designate the option as a hedge. (Round the the nearest dollar)