QUESTION C PLEASE

Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,300 cases of Oktoberfest-style beer from a German supplier for 312,000 euros. Relevant U.S. dollar exchange rates for the euro are as follows: The company closes its books and prepares third-quarter financial statements on September 30. a. Assume that the beer arrived on August 15, and the company made payment on October 15 . There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. b. Assume that the beer arrived on August 15, and the company made payment on October 15 . On August 15 , the company entered into a two-month forward contract to purchase 312,000 euros. The company designated the forward contract as a cash flow hedge of a foreign currency payable. Forward points are excluded in assessing hedge effectiveness and amortized to net income using a straight-line method on a monthly basis. Prepare journal entries to account for the import purchase and foreign currency forward contract. c. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15 . On August 15 , the company entered into a two-month forward contract to purchase 312,000 euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, and import purchase. 1 Record entry placed for purchase of Beer. 2 Record gain or loss on forward contract. 3 Record gain or loss on firm commitment. 4 Record the gain or loss on the forward contract. 5 Record the forward contract fair value hedge of a firm commitment. 6 Record purchase of foreign currency for settling the accounts payable. 7 Record the purchase of inventory. 8 Record the transfer of inventory to cost of goods sold. 9 Record entry to close the firm commitment