On November 1, 2013, Mayberry Corporation, a U.S. corporation, purchased from Cantata Corporation, a Mexican company, some

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On November 1, 2013, Mayberry Corporation, a U.S. corporation, purchased from Cantata Corporation, a Mexican company, some machinery that cost 1,000,000 pesos. The invoice was payable in pesos on January 30, 2014. To hedge against rapid changes in the peso, Mayberry entered into a forward contract on November 1, 2013 with AB Trader & Company, a US brokerage and investment firm. The contract specified that Mayberry would buy 1,000,000 pesos from AB Trader at $0.084 per peso for settlement on January 30, 2014.

Assume that all three companies are subject to the same accounting standards and have December 31st year-ends. The spot rates for pesos on November 1, December 31, and January 30, are $0.082, $0.080, and $0.089, respectively. The 30-day forward rate for pesos on December 31, 2013 is $0.083. The forward contract is not settled net.

Record General Journal entries for Mayberry Corporation on November 1, December 31, and January 30. If no entry is required on a particular date, indicate "no entry" in the General Journal. This is a fair value hedge