4 Eximco Corporation (based in Champaign, Illinois) has a number of transactions with companies in the country of Mongagua, where the currency is the mong. On November 30, 2017, Eximco sold equipment at a price of 500,000 mongs to a Mongaguan customer that will make payment on January 31, 2018. In addition, on November 30, 2017, Eximco purchased raw materials from a Mongaguan supplier at a price of 300,000 mongs, it will make payment on January 31, 2018. To hedge its net exposure in mongs, Eximco entered into a two-month forward contract on November 30, 2017, to deliver 200,000 mongs to the foreign currency broker in exchange for $104,000. Eximco properly designates its forward contract as a fair value hedge of a foreign currency receivable. The following rates for the mong apply 10 points Sklpped Forward Rate (to January 31, 2818) $ 8.52 Spot Rate Date November 30, 2817 December 31, 2817 January 31, 2818 $8.53 e.58 8.49 0.48 N/A eBook Eximco's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901 Print References a. Prepare all journal entries, including December 31 adjusting entries, to record these transactions and the forward contract. b. What is the impact on net income in 2017? c. What is the impact on net income in 2018? Complete this question by entering your answers in the tabs below. RqReq B and C Prepare all journal entries, including December 31 adjusting entries, to record these transactions and the forward contract. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Show lessA View transaction list Journal entry worksheet 123 4 5 678 12 Record sale of equipment on account to foreign customer. Note: Enter debits before credits. Date General Journal Debit Credit 11/30/2017