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C1. On October 15, our company has executed a purchase order for newequipment to be purchased from a supplier in Denmark for a purchaseprice of DKK 1.2 million. The equipment is deliverable on March 31.In order to hedge the commitment to pay DKK1.2 million, we enterinto a forward exchange contract on October 15 to receive DKK1.8million on March 31 at an exchange rate of $0.17: DKK1. Assume thefollowing exchange gates:DateSpot RatesForward RatesOctober 15$0.15:DKK1$0.17:DKK1December 31$0.16:DKK1$0.18:DKK1March 31$0.20:DKK1n/aRequired: Prepare the journal entries to record thefollowing:Execution of the purchase order and forward contractAdjusting entries at December 31Receipt of equipment and payment to equipment supplier on March31.