Please help with Parts C, D, and E

Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 2,200 cases of wine at a price of 260 euros per case. The total purchase price is 572,000 euros. Relevant exchange rates for the euro are as follows: Call Option Premium Forward Rate for October 31 Date Spot Rate to October 31 (strike price $1.65) September 15 $1.65 $ 1.71 $ 0.035 September 30 1.70 1.74 0.070 October 31 1.75 1.75 0.100 Vino Veritas Company has an incremental borrowing rate of 12 percent (1 percent per month) and closes the books and prepares financial statements at September 30. a. Assume that the wine arrived on September 15, and the company made payment on October 31. There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. b. Assume that the wine arrived on September 15, and the company made payment on October 31. On September 15, Vino Veritas entered into a 45-day forward contract to purchase 572,000 euros. It properly designated the forward contract as a fair value hedge of a foreign currency payable. Prepare journal entries to account for the import purchase and foreign currency forward contract. c. Vino Veritas ordered the wine on September 15. The wine arrived and the company paid for it on October 31. On September 15, Vino Veritas entered into a 45-day forward contract to purchase 572,000 euros. The company properly designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Prepare journal entries to account for the foreign currency forward contract, firm commitment, and import purchase. d. The wine arrived on September 15, and the company made payment on October 31. On September 15, Vino Veritas purchased a 45- day call option for 572,000 euros. It properly designated the option as a cash flow hedge of a foreign currency payable. Prepare journal entries to account for the import purchase and foreign currency option. e. The company ordered the wine on September 15. It arrived on October 31, and the company made payment on that date. On September 15, Vino Veritas purchased a 45-day call option for 572,000 euros. It properly designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. Prepare journal entries to account for the foreign currency option, firm commitment, and import purchase. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Vino Veritas ordered the wine on September 15. The wine arrived and the company paid for it on October 31. On September 15, Vino Veritas entered into a 45-day forward contract to purchase 200,000 euros. The company properly designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Prepare journal entries to account for the foreign currency forward contract, firm commitment, and import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your present value interest factor to four decimal places. Round your answers to 2 decimal places.) Show less No Date General Journal Debit Credit 09/15 1 > No journal entry required 2 09/15 > No journal entry required 3 09/30 Forward contract Gain on forward contract >> 4 09/30 Loss on firm comittment Firm commitment 5 10/31 Forward contract OOO Gain on forward contract 6 10/31 Loss on firm comittment OO Firm commitment 7 10/31 Foreign currency (euro) Cash OOO Forward contract 8 10/31 Inventory Foreign currency (euro) 10/31 Firm commitment Adjustment to net income >> > 2 09/15 Foreign currency option Cash ol 3 09/30 Foreign exchange loss Accounts payable (euro) 09/30 Foreign currency option Accumulated other comprehensive income > 5 09/30 Accumulated other comprehensive income Gain on foreign currency option 6 09/30 Option expense Accumulated other comprehensive income OO 7 10/31 Foreign exchange loss Accounts payable (euro) Oo 8 10/31 Foreign currency option Accumulated other comprehensive income O 9 10/31 Accumulated other comprehensive income Gain on foreign currency option 10 10/31 Option expense Accumulated other comprehensive income OOOO OOO OON 11 10/31 Foreign currency (euro) Cash Foreign currency option 12 10/31 Accounts payable (euro) Foreign currency (euro) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E The company ordered the wine on September 15. It arrived on October 31, and the company made payment on that date. On September 15, Vino Veritas purchased a 45-day call option for 200,000 euros. It properly designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. Prepare journal entries to account for the foreign currency option, firm commitment, and import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your present value interest factor to four decimal places. Round your answers to the nearest dollar amount.) Show less No General Journal Debit Date 09/15 Credit 1 Foreign currency option Cash SIS 2 09/30 Foreign currency option Gain on foreign currency option ol 3 09/30 Loss on firm comittment Firm commitment 10/31 Foreign currency option Gain on foreign currency option 5 10/31 Loss on firm comittment O Firm commitment 6 10/31 Foreign currency (euro) Cash Foreign currency option OOO 7 10/31 Inventory Foreign currency (euro) 8 10/31 Firm commitment Adjustment to net income >> No journal entry required 2 09/15 > No journal entry required 3 09/30 Forward contract Gain on forward contract >> 4 09/30 Loss on firm comittment Firm commitment 5 10/31 Forward contract OOO Gain on forward contract 6 10/31 Loss on firm comittment OO Firm commitment 7 10/31 Foreign currency (euro) Cash OOO Forward contract 8 10/31 Inventory Foreign currency (euro) 10/31 Firm commitment Adjustment to net income >> > 2 09/15 Foreign currency option Cash ol 3 09/30 Foreign exchange loss Accounts payable (euro) 09/30 Foreign currency option Accumulated other comprehensive income > 5 09/30 Accumulated other comprehensive income Gain on foreign currency option 6 09/30 Option expense Accumulated other comprehensive income OO 7 10/31 Foreign exchange loss Accounts payable (euro) Oo 8 10/31 Foreign currency option Accumulated other comprehensive income O 9 10/31 Accumulated other comprehensive income Gain on foreign currency option 10 10/31 Option expense Accumulated other comprehensive income OOOO OOO OON 11 10/31 Foreign currency (euro) Cash Foreign currency option 12 10/31 Accounts payable (euro) Foreign currency (euro) Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E The company ordered the wine on September 15. It arrived on October 31, and the company made payment on that date. On September 15, Vino Veritas purchased a 45-day call option for 200,000 euros. It properly designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. Prepare journal entries to account for the foreign currency option, firm commitment, and import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your present value interest factor to four decimal places. Round your answers to the nearest dollar amount.) Show less No General Journal Debit Date 09/15 Credit 1 Foreign currency option Cash SIS 2 09/30 Foreign currency option Gain on foreign currency option ol 3 09/30 Loss on firm comittment Firm commitment 10/31 Foreign currency option Gain on foreign currency option 5 10/31 Loss on firm comittment O Firm commitment 6 10/31 Foreign currency (euro) Cash Foreign currency option OOO 7 10/31 Inventory Foreign currency (euro) 8 10/31 Firm commitment Adjustment to net income >>