On October 1, 2024 Pharoah Corporation ordered some equipment from a suppliedr for 316,000 euros. Delivery and payment are to occur on November 15, 2024. the spot rates on october 1 and november 15, 2024 are $1.20 and $1.30 respectively.

A. assume that pharoah entered into a forward contract on October 1, 2024 tohedge for the firm committment. The forward rates for euros for NOvember 15 delivery were: October 1, $1.23 and November 15, $1.30. Futhermore, assume the equipment was purchased and paid for on November 15. prepare all journal entries needed to record and settle the hedge and to record the purchase of the equipment.

B. If the forward contract was not acquired, record the journal entry to purchase the equipment.