Pumped Up Company purchased equipment from Switzerland for 160,000 francs on December 16, 20X7 with payment due on February 14, 20X8. On December 16, 20X7, Pumped Up also acquired a 60-day forward contract to purchase francs at a forward rate of SF1 1 - $0.45. On December 31, 20X7, the forward rate for an exchange on February 1.20x8, is SFr 1 = 50 175. The spot rates were December 16, 20x7 December 31, 20x2 February 14, 20x8 SFr 1 sre 1 SFr 1 - $ 0.46 0.48 0.47 Part 1: Assume that the forward contract is not designated as a hedge but is entered into to manage the company's foreign currency exposed accounts payable a Prepare journal entries for Pumped Up to record the purchase of equipment, all entries associated with the forward contract, the adjusting entries on December 31, 20X7, and entries to record the revaluations and payment on February 14, 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 8 9 > 6 2 3 5 b. What was the effect of the foreign currency transactions on the income statement, including both the accounts payable and the forward contract, for the year ended December 31, 20X7? Nel income by c. What was the overall effect of these transactions on the income statement from December 16, 20x7. to February 14, 20x8? Net Income by