Our firm purchased equipment for US$100,000 on Dec 1, 2015. Our year end is December 31, and the payable is due on Jan 31, 2016. On December 1, 2015, we entered into a forward exchange contract with the bank to provide us with the US dollars on January 31, 2016.

The following rates were in effect:

Forward Rates:

Dec1,2015; 60 day forward rate US$1= CDN$1.152

Dec 31, 2015; 30 day forward rate US$1 = CDN$ 1.162

Spot rates

Dec 1, 2015 US$1 = CDN$ 1.130

Dec 31, 2015 US$1 = CDN$ 1.16

Jan 31, 2016 US$1 = CDN$ 1.210

Prepare all the journal entries arising from this transaction, from original sale to final settlement.