Complete foreign financial statement conversions.

Acme Corporation, a U$.$S$.-$based importer of beer and wine, purchased $1,000$ cases of Oktoberfest$-$style beer from Coyote for $50,000$ euros

before purchasing the company. Relevant US dollar exchange rates for the euro are as follows:

The company closes its books and prepares third$-$quarter financial statements on September $30.$

Assume that the beer arrived on August $15,$ and the company made payment on October $15.$ There was no attempt to hedge the

exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. Assume that the beer arrived on August $15,$ and the company made payment on October $15.$ There was no attempt to hedge the

exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. Assume that the beer arrived on August $15,$ and the company made payment on October $15.$ On August $15,$ the company entered into

a two$-$month forward contract to purchase $50,000$ euros. The company designated the forward contract as a cash flow hedge of a foreign

currency payable. Forward points are excluded in assessing hedge effectiveness and amortized to net income using a straight line method

on a monthly basis. Prepare journal entries to account for the import purchase and foreign currency forward contract. Assume that the company ordered the beer on August $15.$ The beer arrived and the company paid for it on October $15.$ On August $15$

the company entered into a two$-$month forward contract to purchase $50,000$ euros. The company designated the forward contract as a

fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in th

forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign

currency forward contract, foreign currency firm commitment, and import purchase.Assume that the company ordered the beer on August $15.$ The beer arrived and the company paid for it on October $15.$ On August $15,$

the company purchased a two$-$month call option on $50,000$ euros. The company designated the option as a fair value hedge of a foreign

currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of

the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life

of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import

purchase.Assume that on August $15,$ the company forecasted the purchase of beer on October $15.$ On August $15,$ the company acquired a

two$-$month call option on $50,000$ euros. The company designated the option as a cash value hedge of a forecasted foreign currency

transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is

recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import

purchase.

August $15$