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1. On December 1, 2008, Denizen Corporation entered into a 120-day forward contract to purchase 20,000 Canadian dollars (C$). Denizen%u2019s fiscal year ends on December

1.On December 1, 2008, Denizen Corporation entered into a 120-day forward contract to purchase 20,000 Canadian dollars (C$). Denizen%u2019s fiscal year ends on December 31. The forward contract was to hedge a firm commitment agreement made on December 1, 2008, to purchase electronic goods on January 30, 2009, with payment due on March 31, 2009. The derivative is designated as a fair value hedge. The direct exchange rates follow:

Date

Spot Rate

Forward Rate for March 31, 2009

December 1, 2008

0.940

0.944

December 31, 2008

0.945

0.947

January 30, 2009

0.943

0.943

March 31, 2009

0.941



Prepare all journal entries for Denizen Corporation

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