On November 1, 2017, Zamfir Company, a U.S. corporation, purchased minerals from a Russian company for 2,000,000 rubles, payable in 3 months. Relevant exchange rates between U.S. & Russian currencies are given: Spot Rate Forward Rate (to February 1, 2018) November 1, 2017 $0.358 $0.384 December 31, 2017 $0.354 $0.352 April 1, 2018 $0.344 The company's incremental borrowing rate provides a discount rate of 0.975 for three months. Required: Prepare journal entries for Zamfir in connection with the purchase and payment: November 1, 2017: Record journal entry to show purchase of inventory Debit Credit December 31, 2017: Assuming Zamfir does not attempt to hedge this transaction, what is the journal entry to record the gain or loss that would be shown on the company's December 31, 2017 financial statements? Debit Credit December 31, 2017: Assume instead that on November 1, 2017, Zamfir Company entered into a forward contract to buy 2,000,000 rubles on February 1, 2018. What is the journal entry to record the fair value of the forward contract on December 31, 2017? Debit Credit On November 1, 2017, Zamfir Company, a U.S. corporation, purchased minerals from a Russian company for 2,000,000 rubles, payable in 3 months. Relevant exchange rates between U.S. & Russian currencies are given: Spot Rate Forward Rate (to February 1, 2018) November 1, 2017 $0.358 $0.384 December 31, 2017 $0.354 $0.352 April 1, 2018 $0.344 The company's incremental borrowing rate provides a discount rate of 0.975 for three months. Required: Prepare journal entries for Zamfir in connection with the purchase and payment: November 1, 2017: Record journal entry to show purchase of inventory Debit Credit December 31, 2017: Assuming Zamfir does not attempt to hedge this transaction, what is the journal entry to record the gain or loss that would be shown on the company's December 31, 2017 financial statements? Debit Credit December 31, 2017: Assume instead that on November 1, 2017, Zamfir Company entered into a forward contract to buy 2,000,000 rubles on February 1, 2018. What is the journal entry to record the fair value of the forward contract on December 31, 2017? Debit Credit