On October 1, 2015, Hanks Company entered into a forward contract to sell 280,000 LCUs in four months (on January 31, 2016) and receive $204,400 in U.S. dollars. Exchange rates for the LCU follow:

Date	Spot Rate	Forward Rate (to January 31, 2016)
October 1, 2015	$0.77	$0.73
December 31, 2015	0.79	0.82
January 31, 2016	0.80	N/A

Hankss incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Hanks must close its books and prepare financial statements on December 31.

Prepare journal entries, assuming that Hanks entered into the forward contract as a fair value hedge of a firm commitment related to a 280,000 LCU sale that will be made on January 31, 2016. Include entries for both the firm commitment and the forward contract. The fair value of the firm commitment is measured referring to changes in the forward rate. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to 2 decimal places.)

1.

Record entry for foreign currency firm commitment entered into by Hanks Company.

2.

Record entry for forward contract entered into by Hanks Company.

3.

Record gain or loss on forward contract.

4.

Record gain or loss on firm commitment.

5.

Record gain or loss on forward contract.

6.

Record gain or loss on firm commitment.

7.

Record sale of LCU by Hanks Company.

8.

Record settlement of forward contract.

9.

Record entry to close the firm commitment.