Q1. A U.S. Parent Company acquires 25,000 from its bank on January 1, 2017, for use in future purchases from German companies. The direct exchange rate is $1.20 = 1.The parent company prepares its financial statements on July 1,2017 and on that date the exchange rate was $1.10=1. Required: record entries for purchase of currency and adjusting entry for gain or loss on July 1, 2017.