Assume that the forward contract is not designated as a hedge but is entered into to manage the company's foreign currencyexposed accounts payable. a. Prepare journal entries for Pumped Up to record the purchase of equipment, all entries associated with the forward contract, the adjusting entries on December 31, 20X7; and entries to record the revaluations and payment on February 14,208. b. What was the effect of the foreign currency transactions on the income statement, including both the accounts payable and the forward contract, for the year ended December 31,207 ? c. What was the overall effect of these transactions on the income statement from December 16,207, to February 14,208 ? Part II: Now, assume the forward contract is designated as a cash flow hedge of the variability of the future cash flows from the foreign currency account payable. The company uses the forward exchange rate to assess effectiveness. Required: Prepare journal entries for Pumped Up to record the purchase of equipment, all entries associated with the forward contract, the adjusting and reclassification entries on December 31, 20X7; and entries to record the revaluations and payment on Februaty 14, 208. Complete this question by entering your answers in the tabs below. Prepare journal entries for Pumped Up to record the purchase of equipment; all entries associated with the forward contract, the adjusting entries on December 31,207; and entries to record the revaluations and payment on February 14, 208. Wote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 23456789 Record the purchase of the equipment with a payable denominated in swiss francs. Notos coter debis beforo credit. What was the effect of the foreign currency transactions on the income statement, including both the accou the forward contract, for the year ended December 31,207? What was the overall effect of these transactions on the income statement from December 16,207, to February 1-1, 208? Prepare journal entries for Pumped Up to record the purchase of equipment; all entries associated with the forward contract; the adjusting and reclassification entries on December 31,207; and entries to record the revaluations and payment on February 14, 208. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the entry to purchase the equipment with a payable denominated in Swiss francs. Note: Enter debits before credits. Assume that the forward contract is not designated as a hedge but is entered into to manage the company's foreign currencyexposed accounts payable. a. Prepare journal entries for Pumped Up to record the purchase of equipment, all entries associated with the forward contract, the adjusting entries on December 31, 20X7; and entries to record the revaluations and payment on February 14,208. b. What was the effect of the foreign currency transactions on the income statement, including both the accounts payable and the forward contract, for the year ended December 31,207 ? c. What was the overall effect of these transactions on the income statement from December 16,207, to February 14,208 ? Part II: Now, assume the forward contract is designated as a cash flow hedge of the variability of the future cash flows from the foreign currency account payable. The company uses the forward exchange rate to assess effectiveness. Required: Prepare journal entries for Pumped Up to record the purchase of equipment, all entries associated with the forward contract, the adjusting and reclassification entries on December 31, 20X7; and entries to record the revaluations and payment on Februaty 14, 208. Complete this question by entering your answers in the tabs below. Prepare journal entries for Pumped Up to record the purchase of equipment; all entries associated with the forward contract, the adjusting entries on December 31,207; and entries to record the revaluations and payment on February 14, 208. Wote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet 23456789 Record the purchase of the equipment with a payable denominated in swiss francs. Notos coter debis beforo credit. What was the effect of the foreign currency transactions on the income statement, including both the accou the forward contract, for the year ended December 31,207? What was the overall effect of these transactions on the income statement from December 16,207, to February 1-1, 208? Prepare journal entries for Pumped Up to record the purchase of equipment; all entries associated with the forward contract; the adjusting and reclassification entries on December 31,207; and entries to record the revaluations and payment on February 14, 208. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the entry to purchase the equipment with a payable denominated in Swiss francs. Note: Enter debits before credits