Panthers Corp., a U.S. importer of wine, placed an order with an Italian wine producer for 1,000,000 bottles, at a price of Euro 15 per bottle. Relevant exchange rates are:

Date	Spot Rate	Forward Rate (to January 31, 2022)	Call Option Premium for January 31, 2022 (strike price $1.119)
1-Nov-21	$ 1.119	$ 1.125	0.005
31-Dec-21	1.123	1.130	0.007
31-Jan-22	1.121	1.121	0.002

Panthers has an incremental borrowing rate of 12 percent (1 percent per month) and prepares the financial statements on December 31.

Required:

e) Assume that Panthers has a long-term relationship with an Italian wine producer and can reliably forecast that it will need to buy Euro 15 million of the 2021 vintage in February 2022. On November 1, 2021 Panthers purchased a three-month call option for Euro 15 million. The option was properly designated as a cash flow hedge of a forecasted transaction. On February 15, 2022 Panthers places the order and pays the Italian wine producer. Prepare the journal entries to account for the foreign currency option and import purchase.