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 $30.$

Assume that the beer arrived on August $15,$ and the company made payment on October $15.$ On August $15,$ the company entered into a two$-$month forward contract to purchase $50,000$ euros. The company designated the forward contract as a cash flow hedge of a foreign currency payable. Forward points are excluded in assessing hedge effectiveness and amortized to net income using a straight$-$line method on a monthly basis. Prepare journal entries to account for the import purchase and foreign currency forward contract.