On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 310,000 rubles in four months (on January 31, 2018) and receive $186,000 in U.S. dollars. Exchange rates for the ruble follow:

Date	Spot Rate	Foward Rate (to January 31, 2018)
10/1/2017	0.56	0.6
12/31/17	0.59	0.62
01/31/2018	0.61	N/A

Sharp's 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. Sharp must close its books and prepare financial statements on December 31.

Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a 310,000 ruble receivable arising from a sale made on October 1, 2017. Include entries for both the sale and the forward contract.

Entry 1. Record the sale.

Entry 2. Record entry for forward contract entered into by Hanks Company.

Entry 3. Record the entry for changes in the exchange rate.

Entry 4. Record gain or loss on forward contract.

Entry 5. .Record the entry for changes in the exchange rate.

Entry 6. Record gain or loss on forward contract.

Entry 7. Record the receipt of LCUs.

Entry 8. Record settlement of forward contract.