On December $1,2023,$ Dorn Corporation agreed to purchase a machine to be manufactured by a company in Brazil. The purchase price is $1,150,000$ Brazilian reals. To hedge against fluctuations in the exchange rate, Dorn entered into a forward contract on December $1$ to buy $1,150,000$ reals on April $1,$ the agreed date of machine delivery, for $$0\mathrm{.}375$ per real. The following exchange rates were quoted:

$\backslash$table$[[$Date$,$Spot Rate,$\backslash$table$[[$Forward Rate$],[($Delivery on $4/1)]]],[$December $1,0\mathrm{.}390,0\mathrm{.}375],[$December $31,0\mathrm{.}370,0\mathrm{.}373],[$April $1,0\mathrm{.}385,-]]$

Required:

Prepare journal entries necessary for Dorn during $2023(5$ points$)$ and $2024(10$ points$)$ to account for the transactions described above.