Hedged Purchase Commitment and Foreign-Currency-Denominated Liability On September 15, 2014, the Hawkins Corporation, a U.S. company, agreed to purchase 10,000 PDAs from a Mexican supplier for a total invoice price of 15,000,000 pesos. The PDAs are received on November 15 and payment is made on January 15, 2015. Concurrently, on September 15, 2014, Hawkins purchased 15,000,000 pesos for delivery on January 15, 2015, for payment of the invoice price. Hawkins Corporation closes its books on December 31. Relevant exchange rates ($/peso) are as follows:

Required
Prepare the journal entries made by Hawkins to record the above events, including any required year-end adjusting entries.

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Forward Rate for Delivery on January 15, 2015 Spot Rate September 15, 2014. November December 31,2014 January 15,2015 $0.102 0.103 0.105 0.108 $0.104 0.105 0.107 0.108 15, 2014