Belsen purchased inventory on december 1, 2015. payment of 100,000 stickles was to be made in sixty days. also on december 1, belsen signed a contract to purchase §100,000 in sixty days. the spot rate was §1 = .35714, and the 60-day forward rate was §1 = $.38462. on december 31, the spot rate was §1 = .34483 and the 30-day forward rate was §1 = .38168. assume an annual interest rate of 8% and a fair value hedge. the present value for one month at 8% is .9901.in the journal entry to record the establishment of a forward exchange contract, at what amount should the forward contract account be recorded on december 1? $0, since there is no cost there is no value for the contract at this date.$71,428.$588.$582.none of the above.

Required prepare the necessary adjusting entries in the general journal as of december 31, assuming the following: on september 1, the company entered into a prepaid equipment maintenance contract. birch company paid $3,400 to cover maintenance service for six months, beginning september 1. the payment was debited to prepaid maintenance. supplies on hand at december 31 are $3,900. unearned commission fees at december 31 are $7,000. commission fees earned but not yet billed at december 31 are $3,500. (note: debit fees receivable.) birch company's lease calls for rent of $1,600 per month payable on the first of each month, plus an annual amount equal to 1% of annual commissions earned. this additional rent is payable on january 10 of the following year. (note: be sure to use the adjusted amount of commissions earned in computing the additional rent.)