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I am confused about the journal entries for this problem, I answered following what my book said yet most of them are incorrect. I appreciate
I am confused about the journal entries for this problem, I answered following what my book said yet most of them are incorrect. I appreciate any help, especially for entry 5&6.
Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1,2020 , with payment of 25,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Icebreaker enters into a forward contract to purchase 25,000 dinars on March 1, 2021. Relevant exchange rates for the dinar on various dates are as follows: a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)Step by Step Solution
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