On November 1, 2017, US Frigatebird Company sold an airplane worth $1 million Australian dollars to Australian company Heron Inc., to be paid on February 1, 2018 in Sydney. In order to hedge foreign exchange, Frigatebird entered into a 90 day forward contract on the same day for the amount of the sale at 0.73 US per Australian dollar.

The relevant exchange rates are of US dollars per Australian dollar:

		Forward Rate
Date	Spot Rate	(Delivery on 2/1/2018)
Nov 1 2017	$ 0.71	$ 0.73
Dec 31 2017	$ 0.75	$ 0.76
Feb 1 2018	$ 0.74
March 31 2028	$ 0.67

Instructions:

1. What journal entry did Frigatebird record on November 1 2017?

2. What journal entry did Frigatebird record on December 31 2017?

3. What journal entry did Frigatebird record on February 1 2018?

4. What journal entry did Frigatebird record on November 1 2017, December 31 2017, February 1 2018, and March 31 2018 assuming that Frigatebird purchased a put option instead for $20,000 to sell $1 million Australian dollars at 0.73 US per Australian dollar with an expiration date of March 31 2018? The option is worth $3,000 on December 31 2017?