Journal Entries— Speculation Using a Forward Contract LO 5 Use the data given in Exercise 11- 9, except assume that on November 1, Sitco Products entered into a 90- day forward contract to buy 900,000 Swedish kronas on January 30 for $.5085 per krona.

Required:
Prepare all necessary journal entries in regard to the forward contract.

Data from exercise 9

Sharon Myers, chief finance officer for Sitco Products, convinced the president of the company to enter into a 90- day forward contract to sell 900,000 Swedish kronas as a speculative venture. When the forward contract was acquired on November 1, 2024, the spot rate for the krona was $.5045 and the 90- day future rate was $.5085. At December 31, 2024, the end of the firm’s fiscal year, the spot rate was $.4981 and the future rate for kronas to be sold on January 30, 2025, was $.4996. On January 30, 2025, the spot rate was $.4826.