Pumped Up Company purchased equipment from Switzerland for 180,000 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 SFr 1 $0.45. On December 31, 20X7, the forward rate for an exchange on February 14, 20X8, is SFr 1 $0.475. The spot rates were December 16, 20X7 December 31,, 20X7 1 SFr 1 SFr 1 SFr= 0.46 0.48 0.47 February 14, 20X8 Part Ill: Now assume the forward contract is designated as a cash flow hedge of the variability of the future cash flows from the foreign currency account payable. The company uses the forward exchange rate to assess effectiveness. Required: Prepare journal entries for Pumped Up to record the purchase of equipment; all entries associated with the forward contract, the adjusting and reclassification 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 1 2 4 6 7 8 11 Record the entry to purchase the equipment with a payable denominated in Swiss francs. Note: Enter debits before credits. General Journal Date Debit Credit Dec. 16, 20X7 Record entry Clear entry View general journal LG