9. 10.00 points Brandin Company purchases materials from a foreign supplier on December 1, 2015, with payment of 29.000 korunas to be made on March 1, 2016. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase On December 1, 2015, Brandin enters into a forward contract to purchase 29.000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows Date December 1, 2015 December 31, 2015 March 1, 2016 Forward Rate Spot Rate Co March 1, 2014) $4.00 $ 4.075 4.10 4200 4.25 NA Brandin's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9003. Brandin must close its books and prepare financial statements at December 31 - 1. Assuming that Brandin designates the forward contract as a cash flow hedge of a foreign currency payable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars (if no entry is required for a transaction event, select "No journal entry required in the first account field. Do not round Intermediate calculations Round your answers to 2 decimal places.) View transaction list 1 Record the purchase of materials 12 > 2 Record the forward contract. J Record the entry for changes in the exchange rate. 4 Record the change in the fair value of the forward contract. Credit S Record the gain or loss on the forward contract. 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. Type here to search 3 10.00 points Brandin Company purchases materials from a foreign supplier on December 1, 2015, with payment of 29.000 korunas to be made on March 1, 2016. The materials are consumed immediately and recognis cost of goods sold at the date of purchase On December 1, 2015, Brandin entorno a forward contract to purchase 29.000 korunas on Maich 1, 2016. Relevant exchange rates for the koruna on various dates are as flow Dato December 1, 2015 December 31, 2015 March 1, 2016 Forward Spot Rate to March 1, 2014) 5400 $ 4.075 4200 NA 425 Brandin's incremental borrowing rate is 12 percent. The present value factor for two months at an annual Interest rate of 12 percentat percent per month) is 0.9803. Brandin must close its books and prepare financial statements at December 31 a 1. Assuming that Brandi designates the forward contract as a cash flow hedge of a foreign currency payable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in US dollars. (i no entry is required for a transactionlevent, select "No journal entry required in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.) View transaction ix 12 > 6 Record the allocation of the premium or discount 7 Record the entry for changes in the exchange rate. 8 Record the entry to adjust the carrying value of the forward contract to its current fair value 9 Record the gain or loss on the forward contract. Credit 30 Record the allocation of the premium or discount 11 Record settlement of the forward contract. 12 Record the payment of korunas to the foreign supplier Type here to search O . Note: - Journal entry has been entered Record entry Clear entry View al journal a 2. Assuming that the purchased parts became a part of the cost of goods sold in 2015, what is the impact on 2015 net income? Do not found intermediate clations impact en 2015 income a 3. What is the impact on 2016 net income? (Do not found intermediate calculations.) mpact on 2016 income 4. What is the impact on net income over the two accounting periods? (Do not round Intermediate calculations impact on nothcomo -1. Assuming that Brandi designates the forward contract as a free hedge of a foreign currency payable prepare journal entries for these transactions in US dollars. It no entry is required for a transactionlevent, select "No journal entry required in the account field. Do not round intermediate cakulations. Round your answers to 2 decimal places View transaction lit Journal entry worksheet 1 2 5 12 Type here to search o II E de X 1 Record the purchase of materials. 12 > 2 Record the forward contract. 3 Record the entry for changes in the exchange rate. 4 Record the change in the fair value of the forward contract Credit S Record the gain or loss on the forward contract. Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. Note: Journal entry has been entered Record entry Clear entry View general journal b.2. Assuming that the purchased parts became a part of the cost of goods sold in 2015, what is the impact on net income in 2015 and in 2016? Do not round intermediate calculations. Round your answers to 2 decimal places.) Not Income 2015 2016 63. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.) Impact on net income Jo Type here to search O i E View transaction list X 12 6 Record the allocation of the premium or discount 7 Record the entry for changes in the exchange rates & Record the entry to adjust the carrying value of the forward contract to its current fair value. 9 Record the gain or loss on the forward contract. Credit 10 Record the allocation of the premium or discount. 11 Record the settlement of the forward contract. 12 Record the payment of korunas to the foreign supplier. Note - Journal entry has been entered Record entry Clear entry View generadourmal b-2. Assuming that the purchased parts became a part of the cost of goods sold in 2015, what is the impact on net income in 2015 and in 2016 (Do not round intermediate calculations. Round your answers to 2 decimal places.) Net Income 2015 2016 13. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.) impact on net income Type here to search O M