1 Record the sales and foreign currency account receivable 2 Record the forward contract 3 Record the entry to revalue the foreign currency account receivable 4 Record the change in the fair value of the forward contract 5 Record the foreign exchange gain or loss on the forward contract 6 Record the amortization of the forward contract premium or discount 7 Record the entry to revalue the foreign currency account receivable 8 Record the entry to adjust the carrying value of the forward contract to its current fair value 9 Record the foreign exchange gain or loss on the forward contract 10 Record the amortization of the forward contract premium or discount 11 Record the receipt of dinars from the foreign customer 12 Record the settlement of the forward contract No Date General Journal Debit Credit 1 12 01 2020 Accounts receivable (dinars) 107,500 Sales 107,500 2 12 01 2020 No journal entry required 3 12 31 2020 Accounts receivable (dinars) 2,500 Foreign Exchange Gain or Loss 2,500 4 12 31 2020 Other comprehensive income 3,125 Forward contract 3,125 5 12 31 2020 Foreign Exchange Gain or Loss 2,500 Other comprehensive income 2,500 6 12 31 2020 Other comprehensive income Foreign Exchange Gain or Loss Icebreaker Company (a U S based company) sells parts to a foreign customer on December 1,2020 , with payment of 25,000 dinars to be received on March 1, 2021 Icebreaker enters into a forward contract on December 1, 2020, to sell 25,000 dinars on March 1, 2021 The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight line method on a monthly basis Relevant exchange rates for the dinar on various dates are as follows Icebreaker must close its books and prepare financial statements at December 31 a 1 Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U S dollars

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1.Record the sales and foreign currency account receivable. 2.Record the forward contract. 3.Record the entry to revalue the foreign currency account receivable. 4.Record the change

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1.Record the sales and foreign currency account receivable.
2.Record the forward contract.
3.Record the entry to revalue the foreign currency account receivable.
4.Record the change in the fair value of the forward contract.
5.Record the foreign exchange gain or loss on the forward contract.
6.Record the amortization of the forward contract premium or discount.
7.Record the entry to revalue the foreign currency account receivable.
8.Record the entry to adjust the carrying value of the forward contract to its current fair value.
9.Record the foreign exchange gain or loss on the forward contract.
10.Record the amortization of the forward contract premium or discount.
11.Record the receipt of dinars from the foreign customer.
12.Record the settlement of the forward contract.

No	Date	General Journal	Debit	Credit
1	12/01/2020	Accounts receivable (dinars)	107,500
		Sales		107,500

2	12/01/2020	No journal entry required

3	12/31/2020	Accounts receivable (dinars)	2,500
		Foreign Exchange Gain or Loss		2,500

4	12/31/2020	Other comprehensive income	3,125
		Forward contract		3,125

5	12/31/2020	Foreign Exchange Gain or Loss	2,500
		Other comprehensive income		2,500

6	12/31/2020	Other comprehensive income
		Foreign Exchange Gain or Loss

Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1,2020 , with payment of 25,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 25,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars