Pacifico Company, a U$.$S$.-$based importer of beer and wine, purchased $1,000$ cases of Oktoberfest$-$style beer from a German supplier for $50,000$ euros. Relevant U$.$S$.$ dollar exchange rates for the euro are as follows:

Date Spot Rate Forward Rate to October $15$ Call Option Premium for October $15($strike price $$1\mathrm{.}10)$

August $15$ $ $1\mathrm{.}10$ $ $1\mathrm{.}16$ $ $0\mathrm{.}05$

September $301\mathrm{.}151\mathrm{.}190\mathrm{.}06$

October $151\mathrm{.}181\mathrm{.}18($spot$)$ N$/$A

The company closes its books and prepares third$-$quarter financial statements on September $30.$

Required:

Assume that the beer arrived on August $15,$ and the company made payment on October $15.$ There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase.$\backslash$table$[[$No$,$Date,Gener,,Debit,Credit$],[1,\frac{08}{15},$Inventory,$,55,000,],[,$Accounts Payable $($euro$),,,55,000],[2,\frac{09}{30},$Foreign Exchange Gain or Loss,$,,],[,$Accounts Payable $($euro$),,,],[3,\frac{10}{15},$Foreign Exchange Gain or Loss,$,,],[,$Accounts Payable $($euro$),,,],[4,\frac{10}{15},$Foreign Currency $($euro$),,,],[,$Cash,$,,],[5,\frac{10}{15},$Accounts Payable $($euro$),,,],[,$Foreign Currency $($euro$),,,],[6,\frac{10}{15},$Cost of Goods Sold,$,,],[,$Inventory,$,,]]$

Record the purchase of $1000$ cases of Oktoberfest$-$style beer from a German supplier.

$2$Record the entry to adjust the value of the euros to the new spot rate.

$3$Record the entry to adjust the value of the euros to the new spot rate.

$4$Record purchase of foreign currency for settling the accounts payable.

$5$Record payment made to the German supplier.

$6$Record the transfer of inventory to cost of goods sold.