PROBLEM H Bulldog Enterprise, a U.S. firm, agreed on November 1, 2016, to buy gears from a Mexican firm for 75,000 pesos Delivery and payment are scheduled for February1, 2017. On November 1, 2016, Buldog also acquired a forvard contract to buy 75.000 pesos on February 1, 2016. (The gears represent inventory to the U.S. firm.) The following exchange rates existed: Date Spot Rate 1 peso so.223 1 peso s0.228 1 peso = $0.226 Forward Rate peso s0.227 1 peso s0.230 1 peso-S0226 November 1, 2016 December 31, 2016 February 1, 2017 Discount rate-15% Required a) Prepare the joumal entries needed to properly reflect the purchase transaction and the forward exchange contract. The forward contract meets the conditions necessary to be classified as a hedge on an identifiable foreign currency commitment b) Show how the transactions will be reflected in the 12/31/16 balance sheet