Eximco Corporation (based in Champaign, Illinois) has a number of transactions with companies in the country of Mongagua, where the currency is the mong. On November 30, 2017, Eximco sold equipment at a price of 500,000 mongs to a Mongaguan customer that will make payment on January 31, 2018. In addition, on November 30, 2017, Eximco purchased raw materials from a Mongaguan supplier at a price of 300,000 mongs; it will make payment on January 31, 2018. To hedge its net exposure in mongs, Eximco entered into a two-month forward contract on November 30, 2017, to deliver 200,000 mongs to the foreign currency broker in exchange for $104,000. Eximco properly designates its forward contract as a fair value hedge of a foreign currency receivable. The following rates for the mong apply: Date Spot Rate Forward Rate (to January 31, 2018) November 30, 2017 $ 0.53 $ 0.52 December 31, 2017 0.50 0.48 January 31, 2018 0.49 N/A Eximco's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Prepare all journal entries, including December 31 adjusting entries, to record these transactions and the forward contract. What is the impact on net income in 2017? What is the impact on net income in 2018?

Req A Req B and C Prepare all journal entries, including December 31 adjusting entries, to record these transactions and the forward contract. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Show less No Date General Journal Debit Credit 11/30/2017 Accounts receivable (mongs) 265,000 Sales 265,000 11/30/2017 Inventory 159,000 Accounts payable (mongs) 159,000 11/30/2017 No Transaction Recorded 12131/2017 No Transaction Recorded 12/31/2017 No Transaction Recorded 12131/2017 No Transaction Recorded 01/31/2018 No Transaction Recorded 01/31/2018 No Transaction Recorded 01/31/2018 No Transaction Recorded 01/31/2018 No Transaction Recorded 01/31/2018 No Transaction Recorded K Req A Req B and C >