On June 1 Hammer Company purchased inventory from a foreign

supplier at a price of 75,000 FCU (FCU is "foreign currency units")

Hammer will make payment in three months on September 1.

On June 1, Hammer entered into a forward contract maturing on September 1 as a fair value hedge

of its FCU lliability.

help with all journal entries, including adjusting entries, to record the transaction and the forward contract?

Date. Spot Rate Forward rate*

June 1. $0.80. $0.85

june 30. $ 0.83. $0.84

sept.1 $0.86

*Forward rate is for a contract written on June 1 to mature on September 1. (Disregard the impact of any interest factor or discount rate.)