Problem 1 - Making Money Inc. (MMI) a U.S. company is involved in numerous transactions with foreign companies. They just completed a transaction with a company out of Taiwan. On September 1, 2006 MMI purchased on account a money counting machine for 5,000,000 Taiwan dollars. The transaction will be settled on March 1, 2007. Prepare the journal entries to record the transaction, adjust the accounts at year end, and settle the contract. Note: While "Forward Rate" information is provided, the problem is NOT asking for you to hedge the transaction. No hedge entries required. Date Sept. 1, 2006 December 31, 2006 March 1, 2007 Spot Rate $.02631 $.02740 $.02591 Forward Rate - Maturity March 1 $.02634 $.02735