assuming that brandlin designates the forward contract as a fair value hedge of a foreign currency payable 1. record purchase of materials 2. record the forward of contract 3.record the entry for changes in the exchange rate 4. record the change in the fair value of the forward contact 5.record 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 8. record the entry to adjust the carrying value of the forward contract to its current fair value 9. record gain or loss on the forward contract 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

Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017 with payment of 24,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017 Brandin enters into a forward contract to purchase 24000 korunas on March 1, 2018 Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31, 2017 March 1, 2018 Spot Rate $ 4.20 4.38 Forward Rate (to March 1, 2018) 54.275 N/A Brandin's incremental borrowing rate is 12 percent. The present value factor for two months at an ainterest rate of 12 percent percent per month) is 0.9803 Brandilin must dose its books and prepare financial statements at December 31 6-1. Assuming that Brandlin designates the forward contract as a cash flow edge 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