Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with payment of 21,000 korunas to be received on March 1, 2016. Brandlin enters into a forward contract on December 1, 2015, to sell 21,000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows:

Date	Spot Rate		Forward Rate (to March 1, 2016)
December 1, 2015	$	3.20	$	3.275
December 31, 2015		3.30		3.400
March 1, 2016		3.45		N/A

Brandlins 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 0.9803. Brandlin must close its books and prepare financial statements at December 31.

Please help with the entries below in red:

#4 - record the change in the fair value of the forward contract

#6 -record the allocation of the premium or discount

#8 record 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

#10 record allocation of the premium or discount

1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars. (If no entry is required for a urnal entry required in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Answer is complete but not entirely correct. General Journal Credit No 1 Date 12/01/2015 Debit 67,200.00 Accounts receivable (K) Sales 67,200.00 12/01/2015 No journal entry required 12/31/2015 2,100.00 Accounts receivable (K) Foreign exchange gain 2,100.00 12/31/2015 731.00 X Loss on forward contract Forward contract 731.00 12/31/2015 2,573.00 Loss on forward contract Forward contract 2,573.00 12/31/2015 1,050.00 X Accumulated other comprehensive income Premium revenue 1,050.00 X 03/01/2016 3,150.00 Accounts receivable (K) Foreign exchange gain 3,150.00 8 03/01/2016 2,944.00 X Loss on forward contract Forward contract 2,944.00 X 03/01/2016 3,150.00 X Accounts payable (K) Foreign exchange gain 3,150.00 X 10 03/01/2016 Loss on forward contract 731.00 731.00 X 03/01/2016 72,450.00 Foreign currency (K) Accounts receivable (K) 72,450.00 12 03/01/2016 Cash Forward contract Foreign currency (K) 68,775.00 3,675.00 72,450.00