Spartan Company purchased interior decoration material from Egypt for 100,000 Egyptian pounds on September 5, 20X8, with payment due on December 2, 20X8. Additionally, on September 5, Spartan acquired a 90-day forward contract to purchase 100,000 Egyptian pounds of E = $.1850. The forward contract was acquired to manage the exposed net liability position in Egyptian pounds, but it was not designated as a hedge. The spot rates were:

September 5, 20X8 E1 = $0.1835

December 2, 20X8 E1 = $0.1865

Required: Record the journal entries required for the a. transaction date including the purchase of the forward contract and b. the settlement date for the purchase and the settlement of the forward contract.