Vino Verltas Company, a U.S.-based Importer of wines and spirits, placed an order with a French supplier for 1,500 cases of wine at a price of 260 euros per case. The total purchase price Is 390,000 euros. Relevant exchange rates for the euro are as follows: Call Option Premium for October 31 Forward Rate Date September 15 September 38 October 31 Spot Rate to 0ctober 31 (strike price $1.3) $ 1.30 1.35 1.48 $1.36 1.39 1.48 8.065 8.188 Vino Verltas Company has an Incremental borrowing rate of 12 percent (1 percent per month) and closes the books and prepares financial statements at September 30 a. Assume that the wine arrived on September 15, and the company made payment on October 31. There was no attempt to hedge the exposure to forelgn exchange risk. Prepare Journal entries to account for this Import purchase b. Assume that the wine arrived on September 15, and the company made payment on October 31. On September 15, Vino Vertas entered Into a 45-day forward contract to purchase 390,000 euros. It properly designated the forward contract as a falr value hedge of a forelgn currency payable. Prepare journal entrles to account for the Import purchase and foreign currency forward contract c. Vino Verltas ordered the wine on September 15. The wine arrived and the company pald for It on October 31. On September 15 Vino Verltas entered Into a 45-day forward contract to purchase 390,000 euros. The company properly designated the forward contract as a falr value hedge of a forelgn currency firm commitment The falr value of the firm commitment Is measured by referring to changes In the forward rate. Prepare journal entries to account for the foreign currency forward contract, firm commitment, and Import purchase d. The wine arrived on September 15, and the company made payment on October 31. On September 15, Vino Veritas purchased a 45- day call option for 390,000 euros. It properly designated the option as a cash flow hedge of a forelgn currency payable. Prepare Journal entries to account for the Import purchase and forelgn currency option. e. The company ordered the wine on September 15. It arrived on October 31, and the company made payment on that date. On September 15, VIno Veritas purchased a 45-day call option for 390,000 euros. It properly designated the option as a falr value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. Prepare Journal entries to account for the foreign currency option, firm commitment, and Import purchase. Vino Verltas Company, a U.S.-based Importer of wines and spirits, placed an order with a French supplier for 1,500 cases of wine at a price of 260 euros per case. The total purchase price Is 390,000 euros. Relevant exchange rates for the euro are as follows: Call Option Premium for October 31 Forward Rate Date September 15 September 38 October 31 Spot Rate to 0ctober 31 (strike price $1.3) $ 1.30 1.35 1.48 $1.36 1.39 1.48 8.065 8.188 Vino Verltas Company has an Incremental borrowing rate of 12 percent (1 percent per month) and closes the books and prepares financial statements at September 30 a. Assume that the wine arrived on September 15, and the company made payment on October 31. There was no attempt to hedge the exposure to forelgn exchange risk. Prepare Journal entries to account for this Import purchase b. Assume that the wine arrived on September 15, and the company made payment on October 31. On September 15, Vino Vertas entered Into a 45-day forward contract to purchase 390,000 euros. It properly designated the forward contract as a falr value hedge of a forelgn currency payable. Prepare journal entrles to account for the Import purchase and foreign currency forward contract c. Vino Verltas ordered the wine on September 15. The wine arrived and the company pald for It on October 31. On September 15 Vino Verltas entered Into a 45-day forward contract to purchase 390,000 euros. The company properly designated the forward contract as a falr value hedge of a forelgn currency firm commitment The falr value of the firm commitment Is measured by referring to changes In the forward rate. Prepare journal entries to account for the foreign currency forward contract, firm commitment, and Import purchase d. The wine arrived on September 15, and the company made payment on October 31. On September 15, Vino Veritas purchased a 45- day call option for 390,000 euros. It properly designated the option as a cash flow hedge of a forelgn currency payable. Prepare Journal entries to account for the Import purchase and forelgn currency option. e. The company ordered the wine on September 15. It arrived on October 31, and the company made payment on that date. On September 15, VIno Veritas purchased a 45-day call option for 390,000 euros. It properly designated the option as a falr value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. Prepare Journal entries to account for the foreign currency option, firm commitment, and Import purchase