On November 1, 2021, Americo, Corporation sold wine on credit to Venezia Company for 800,000. Payment is not due for 120 days. Thus, the transaction will be settled on February 28, 2022. On November 1, 2021, Americo, Corporation also entered a 120-day forward contract to sell 800,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows:

REQUIRED:Preparetherequiredinformationbelowforboththeoriginal(underlying)transactionandtherelatedforwardcontract. INORDERTO GET FULL CREDIT FOR YOUR ANSWERS, PLEASE BE SURE TO CLEARLY SHOW ALL OF YOUR WORK.

JOURNAL ENTRIES ON NOVEMBER 1, 2021 (TRANSACTION DATE): (4 POINTS) Foreign Currency Transaction

YEAR-END OF DECEMBER 31, 2021:

JOURNAL ENTRIES: (6 POINTS) Foreign Currency Transaction

FINANCIAL STATEMENT PRESENTATION (10 POINTS) INCOME STATEMENT

JOURNAL ENTRIES ON FEBRUARY 28, 2022 (SETTLEMENT DATE): (10 POINTS) Foreign Currency Transaction