Merit & Family purchased engines from Canada for 30,000 Canadian dollars on March 10 with payment due on June 8. Also, on March 10, Merit acquired a 90-day forward contract to purchase 30,000 Canadian dollars at C$1 = $0.58. The forward contract was acquired to manage Merit & Family's exposed net liability position in Canadian dollars, but it was not designated as a hedge. The spot rates were

March 10 ...... C$1 = $0.57

June 8...... C$1 = $0.60

Required

Prepare journal entries for Merit & Family to record the purchase of the engines, entries associated with the forward contract, and entries for the payment of the foreign currency payable.