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:

d) The wine was ordered on November 1, 2021. It was received and paid for on January 31, 2022. On November 1, Panthers entered into a three-month forward contract to purchase Euro 15 million. The forward contract is properly designated as a fair value hedge of a foreign currency commitment. The fair value of the firm commitment is measured through reference to changes in the forward rate. Prepare the journal entries to account for the foreign currency forward contract, firm commitment, and import purchase. (20 points)