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On January 31, 2020 Fred has a 40,000 foreign currency denominated Accounts Payable due in 1 month. The following exchange rates were in effect. January

On January 31, 2020 Fred has a 40,000 foreign currency denominated Accounts Payable due in 1 month. The following exchange rates were in effect.

January 31, 2020:spot rate5US=1 FC

January 31, 2020:one month forward rate2.5 US =1FC

February 28, 2020spot rate4 US =1 FC

February 28, 2020one month forward rate3 US =1FC

Show the journal entry required at February 28, 2020 for the FX gain or loss.

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