Question 5 Not complete Marked out of 7.00 Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2013 by Sysco Corporation, the largest foodservice distributor in North America: 1. June 15, 2013: Entered into a firm commitment to purchase frozen pasta entrees from Italy which will be resold in the United States. The invoice price was E6,400,000, and delivery and payment were to be made in 60 days. Concurrently, E6,400,000 was purchased in the forward market for delivery in 60 days at the forward rate of $2.32. The goods were received, payment was made, and the forward contract was settled on August 14, 2013, when the spot rate was $2.29. 2. September 1, 2013: Canned products priced at 4,800,000 zloty were sold to a food distributor in Poland when the spot rate was $0.61. Payment was received on November 3, 2013, when the spot rate was $0.57, and the zloty were immediately converted to dollars. Required Prepare the 2013 journal entries made by Sysco Corporation relating to the above transactions. Sysco is a calendar year company. General Journal Date Description Debit Credit Aug.14 To record change in fair value of forward contract. To record change in cost of firm commitment, in U.S. dollar terms. Investment in forward contract To record settlement of forward purchase contract. To record delivery of merchandise and payment to supplier. To adjust inventory balance for value of firm commitment. Sep.01 To record sales to distributor in Poland Nov.03 To record change in value of receivable. To record receipt of payment from customer. To record exchange of foreign currency for dollars