On October 1, 2028, Philly Company purchased inventory from a German supplier for 80,000 Euros due on January 31, 2029. Simultaneously, Philly entered into a forward contract for 80,000 Euros for delivery on January 31, 2029. Payment was made to the foreign supplier on 1/31/2029. Spot rates on October 1, December 31, and January 31, were $1.32, $1.21, and $1.45, respectively. Forward rates on October 1 and December 31 were $1.39 and $1.33 respectively. Required: Prepare all journal entries related to the above transactions on October 1, 2028, December 31, 2018, and January 31, 2029.