The entries on December 31, 20X8, include a

a. Debit to Financial Expense, $300.

b. Credit to Foreign Currency Payable to Exchange Broker, $300.

c. Debit to Foreign Currency Receivable from Exchange Broker, $300.

d. Debit to Foreign Currency Receivable from Exchange Broker, $12,600.

Jon-Jan Restaurants purchased green rice, a special variety of rice, from China for 100,000 renminbi on November 1, 20X8. Payment is due on January 30, 20X9. On November 1, 20X8, the company also entered into a 90-day forward contract to purchase 100,000 renminbi. The forward contract is not designated as a hedge. The rates were as follows:

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Date Spot Rate Forward Rate November 1, 20X8 $0. 120 $0.126 (90 days) December 31, 20X8 0.124 0.129 (30 days) January 30, 20X9 0.127