The following international transactions were entered into during 2013 by Sysco Corporation, the largest foodservice distributor in North America:

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 2,400,000, and delivery and payment were to be made in 60 days. Concurrently, 2,400,000 was purchased in the forward market for delivery in 60 days at the forward rate of $0.87. The goods were received, payment was made, and the forward contract was settled on August 14, 2013, when the spot rate was $0.86.

September 1, 2013: Canned products priced at 1,800,000 zloty were sold to a food distributor in Poland when the spot rate was $0.23. Payment was received on November 3, 2013, when the spot rate was $0.22, 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	AnswerAccounts receivableCashExchange lossInvestment in forward contract	Answer	Answer
	AnswerInvestment in forward contractAccounts receivableCashExchange loss	Answer	Answer
	To record change in fair value of forward contract.
	AnswerCashFirm commitmentAccounts receivableExchange gain	Answer	Answer
	AnswerFirm commitmentAccounts receivableExchange gainCash	Answer	Answer
	To record change in cost of firm commitment, in U.S. dollar terms.
	AnswerCashForeign currencyAccounts receivableInventory	Answer	Answer
	Investment in forward contract	Answer	Answer
	AnswerAccounts receivableInventoryForeign currencyCash	Answer	Answer
	To record settlement of forward purchase contract.
	AnswerInventoryForeign currencyCashAccounts receivable	Answer	Answer
	AnswerInventoryForeign currencyAccounts receivableCash	Answer	Answer
	To record delivery of merchandise and payment to supplier.
	AnswerInventoryAccounts receivableFirm commitmentCash	Answer	Answer
	AnswerAccounts receivableCashFirm commitmentInventory	Answer	Answer
	To adjust inventory balance for value of firm commitment.
Sep.01	AnswerInventorySales revenueCashAccounts receivable	Answer	Answer
	AnswerSales revenueAccounts receivableInventoryCash	Answer	Answer
	To record sales to distributor in Poland.
Nov.03	AnswerExchange lossAccounts receivableInventoryCash	Answer	Answer
	AnswerAccounts receivableCashInventoryExchange loss	Answer	Answer
	To record change in value of receivable.
	AnswerCashInventoryAccounts receivableForeign currency	Answer	Answer
	AnswerForeign currencyInventoryCashAccounts receivable	Answer	Answer
	To record receipt of payment from customer.
	AnswerAccounts receivableInventoryCashForeign currency	Answer	Answer
	AnswerAccounts receivableInventoryCashForeign currency	Answer	Answer
	To record exchange of foreign currency for dollars.