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, 2019, the spot rate for the krona was $.5045 and the 90-day future rate was $.5085. At December 31, 2019, 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, 2020, was $.4996. On January 30, 2020, the spot rate was $.4826.

Required:

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