12-4 On October 1, 2007, Kline Company shipped equipment to a foreign customer for a foreign currency (FC) price of FC 3,000,000 due on January 31,...

12-4On October 1, 2007, Kline Company shipped equipment to a foreign customer for a foreign currency (FC) price of FC 3,000,000 due on January 31, 2008. All revenue realization criteria were satisfied and accordingly the sale was recorded by Kline Company on October 1. Simultaneously, Kline entered into a forward contract to sell FC 3,000,000 on January 31, 2008 for $1,200,000. Payment was received from the foreign customer on January 31, 2008. Spot rates on October 1, December 31, and January 31 were $.42, $.425, and $.435, respectively. Kline amortizes all premiums and discounts on forward contracts and closes its books on December 31.Required:Prepare all journal entries relative to the above to be made by Kline during 2007 and 2008.