On June 1, Year 3, Forever Young Corp. (FYC) ordered merchandise from a supplier in Turkey for Turkish lira (TL) 217,000. The goods were delivered on September 30, with terms requiring cash on delivery. On June 2, Year 3, FYC entered a forward contract as a cash flow hedge to purchase TL 217,000 on September 30, Year 3, at a rate of $0.90. FYC's year-end is June 30. On September 30, Year 3, FYC paid the foreign supplier in full and settled the forward contract. Exchange rates were as follows: June 1 and 2, Year 3. Spot Rates TL1 50.870 June 30, Year 3 September 30, Year 31 TL1 $0.860 TL1 = $0.910 Forward Rates *For contracts expiring on September 30, Year 3. Required: TL1 = $0.900 TL1 $0.895 TL1 - 50.910 (c) Prepare all necessary journal entries to record the transactions described above, assuming that the forward contract was designated as a fair value hedge. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 34 5 6 7 8 Record the forward contract. Note: Enter debits before credits Date General Journal Debit Credit Jun 2. Year 3 Forward contract 1,065