Salluit Limited purchased a capital asset from a French company for € 200,000. The asset was delivered to Salluit Limited on November 1, 20X7. Salluit Limited agreed to pay the supplier in full on February 1, 20X8. The payment was made as agreed. The exchange rates were as follows:
November 1, 20X7.................... C$ 1.00 = € 0.70
December 31, 20X7..................... C$ 1.00 = € 0.60
February 1, 20X8...................... C$ 1.00 = € 0.62

Required
1. Prepare journal entries for 20X7 and 20X8 to record the above information.
2. Assume that Salluit Limited hedged the obligation on November 1, 20X7. The forward rate was C$ 1.00 = € 0.64 on November 1, 20X7, and C$ 1.00 = € 0.63 on December 31, 20X7. Prepare the appropriate journal entries for 20X7 and 20X8.