Homework #2 includes Q1 and Q2 Q1. Cash-flow hedge accounting Domestic Corp. issues a purchase order to a foreign company on November 1, 20X7 to purchase a machine for FCU 200,000. The machine is delivered on January 30, 20X8, and payment is made on March 1, 20X8. Domestic has a December 31 fiscal year-end. On November 1, 20X7, Domestic enters into a forward contract to receive FCU 200,000 on March 1, 20X8. The forward contract is qualified as a hedge and the cash-flow hedge is employed. The relevant exchange rates are as follows: Spot rate Forward rate to March 1, 20X8 Nov 01, 20X7 1 FCU = $1.50 1 FCU = $1.51 Dec 31, 20X7 1 FCU = $1.505 1 FCU = $1.513 Jan 30, 20X8 FCU = $1.53 1 FCU = $1.534 Mar 01, 20X8 1 FCU = $1.54 REQUIREMENT: Prepare all the required journal entries on (1) Nov 01, 20X7, (2) Dec 31, 20X7, (3) Jan 30, 20X8, and (4) Mar 01, 20X8. Homework #2 includes Q1 and Q2 Q1. Cash-flow hedge accounting Domestic Corp. issues a purchase order to a foreign company on November 1, 20X7 to purchase a machine for FCU 200,000. The machine is delivered on January 30, 20X8, and payment is made on March 1, 20X8. Domestic has a December 31 fiscal year-end. On November 1, 20X7, Domestic enters into a forward contract to receive FCU 200,000 on March 1, 20X8. The forward contract is qualified as a hedge and the cash-flow hedge is employed. The relevant exchange rates are as follows: Spot rate Forward rate to March 1, 20X8 Nov 01, 20X7 1 FCU = $1.50 1 FCU = $1.51 Dec 31, 20X7 1 FCU = $1.505 1 FCU = $1.513 Jan 30, 20X8 FCU = $1.53 1 FCU = $1.534 Mar 01, 20X8 1 FCU = $1.54 REQUIREMENT: Prepare all the required journal entries on (1) Nov 01, 20X7, (2) Dec 31, 20X7, (3) Jan 30, 20X8, and (4) Mar 01, 20X8