9:04 100 EXERCISE 11-7 Journal Entries, Income Effect, and Amount of Cash Received LO 6 ASI recently completed the development and installation of an accounting information system for a company located in Rio De Janeiro, Brazil. The company considered that all revenue realization criteria were satisfied and accordingly recorded on October 2, 2024, a receivable from the foreign company. The receivable is to be settled in 120 days on February 1 by the delivery of 300,000 real. To hedge against an unfavorable change in the foreign exchange rate, ASI acquired a forward contract to sell 300,000 real on February 1 for $.4730 per real. The following exchange rates were quoted: Date Spot Forward Rate Rate (Delivery on 2/1) October 2 $.4737 $.4730 December .4895 .4810 31 9:04 9:04 A. Prepare the journal entries to ll 100 record the transactions, adjust the accounts on December 31, and settle the receivable and forward contract on February 1. 1. Based on the data given above, complete the following table. Revenue 2024 2025 Transaction gain (loss) related to the exposed receivable balance Transaction gain (loss) related to the forward contract Effect on net income 2. What was the cumulative effect 9:05 ll 100 2024 2025 Revenue Transaction gain (loss) related to the exposed receivable balance Transaction gain (loss) related to the forward contract Effect on net income 2. What was the cumulative effect on net income (i.e., 2024 plus 2025)? 3. How much cash was received when the account was settled? EXERCISE 11-8 Fair Value Hedge (Unrecognized Firm Commitment) LO6