Blue & Green, Inc Fiscal Year End Is 12/31; Discount Rate = 12%
Required

Blue & Green, Inc. purchased merchandise for 100,000 FC from a foreign vendor on December 1, 20X5. Payment in FC is due January 31, 20X6. On December 1, 20X5, Blue & Green signed an agreement with a foreign exchange broker to buy 100,000 FC on January 30, 20X6. Exchange rates to purchase 1 FC are as follows:
$$\begin{array} { l c c } \text { Date } & \text { Spot Rate } & \text { Fwd Rate } \\\hline 12 / 1 / \mathrm { X } 5 & \$ 1.45 & \$ 1.40 \\12 / 31 / \mathrm { X } 5 & \$ 1.43 & \$ 1.35 \\1 / 31 / \mathrm { X } 6 & \$ 1.41 & \$ 1.41\end{array}$$ Fiscal Year End is 12/31; Discount rate = 12%
Required:
Prepare the journal entries for December 1 through January 31 related to the events described above.