Vino Veritas Company, a U.S.?based importer of wines and spirits, placed an order with a French supplier for 1,200 cases of wine at a price of 230 euros per case. The total purchase price is 276,000 euros. Relevant exchange rates for the euro are as follows:

Date	Spot Rate	Forward Rate to October 31, 2015	Call Option Premium for October 31, 2015 (strike price $1.15)
September 15, 2015	$	1.15		$	1.21		$	0.050
September 30, 2013		1.20			1.24			0.085
October 31, 2015		1.25			1.25			0.100

Vino Veritas Company has an incremental borrowing rate of 12 percent (1 percent per month) and closes the books and prepares financial statements at September 30.

Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,200 cases of 230 euros per case. The total purchase price is 276,000 euros. Relevant exchange rates for the euro are as follows: Date September 15, 2015 September 30, 2013 October 31, 2015 Spot Rate $ 1.15 1.20 1.25 Forward Rate to October 31, 2015 $ 1.21 1.24 1.25 Call Option Premium for October 31, 2015 (strike price $1.15) $ 0.050 0.085 0.100 Vino Veritas Company has an incremental borrowing rate of 12 percent (1 percent per month) and closes the books and pre statements at September 30. a. Assume that the wine arrived on September 15, 2015, and the company made payment on October 31, 2015. There w hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. (If no entry i transaction/event, select "No journal entry required" in the first account field.) Date 09/15 General Journal Debit Credit 09/30 10/31 10/31 10/31 b. Assume that the wine arrived on September 15, 2015, and the company made payment on October 31, 2015. On Sep Veritas entered into a 45-day forward contract to purchase 276,000 euros. It properly designated the forward contract hedge of a foreign currency payable. Prepare journal entries to account for the import purchase and foreign currency f contract. (If no entry is required for a transaction/event, select "No journal entry required" in the first account f your present value interest factor to four decimal places. Round your answers to 2 decimal places.) Date 09/15 09/15 09/30 09/30 10/31 10/31 10/31 10/31 General Journal Inventory Debit Credit c. Vino Veritas ordered the wine on September 15, 2015. The wine arrived and the company paid for it on October 31, 20 September 15, Vino Veritas entered into a 45-day forward contract to purchase 276,000 euros. The company properly forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is m referring to changes in the forward rate. Prepare journal entries to account for the foreign currency forward contract, firm and import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the firs Round your present value interest factor to four decimal places. Round your answers to 2 decimal places.) d. The wine arrived on September 15, 2015, and the company made payment on October 31, 2015. On September 15, V purchased a 45-day call option for 276,000 euros. It properly designated the option as a cash flow hedge of a foreign c Prepare journal entries to account for the import purchase and foreign currency option. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your present value intere decimal places.) Date 09/15 General Journal Debit Credit 09/15 09/30 09/30 10/31 10/31 10/31 10/31 e. The company ordered the wine on September 15, 2015. It arrived on October 31, 2015, and the company made payme On September 15, Vino Veritas purchased a 45-day call option for 276,000 euros. It properly designated the option as hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to change rate. Prepare journal entries to account for the foreign currency option, firm commitment, and import purchase. (If no e for a transaction/event, select "No journal entry required" in the first account field. Round your present value i four decimal places. Round your answers to the nearest dollar amount.) Date 09/15 09/15 09/30 09/30 10/31 10/31 10/31 10/31 General Journal Debit Credit