I have part 1 already answered which I will provide below, I just need part two answered now Thank you so much for your help Part I Maple Company had the following export and import transactions during 20X5 1 On March 1, Maple sold goods to a Canadian company for C$48,000, receivable on May 30 The spot rates for Canadian dollars were C$1 $0 65 on March 1 and C$1 $0 68 on May 30 2 On July 1, Maple signed a contract to purchase equipment from a Japanese company for 420,000 The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with payment due in 60 days on October 29 The spot rates for yen were 1 $0 102 on July 1, 1 $0 104 on August 30, and 1 $0 106 on October 29 The 60 day forward exchange rate on August 30, 20X5, was 1 $0 1055 3 On November 16, Maple purchased inventory from a London company for 28,000, payable on January 15, 20X6 The spot rates for pounds were 1 $1 65 on November 16, 1 $1 63 on December 31, and 1 $1 64 on January 15, 20X6 The forward rate on December 31, 20X5, for a January 15, 20X6, exchange was 1 $1 645 Required Prepare journal entries to record Maples import and export transactions during 20X5 and 20X6 (If no entry is required for a particular transaction, select No journal entry required in the first account field a 1 Prepare journal entries to record Maples import and export transactions during 20X5 and 20X6 Record the sale of goods Record the foreign currency transaction gain Record the collection of accounts receivable Record the cash received a 2 Record the commitment to purchase the equipment Record the purchase of the equipment Record the revaluation of the foreign currency Record the receipt of foreign currency Record the payment of accounts payable a 3 ecord the purchase of inventory Record the revaluation of the foreign currency Record the revaluation of the foreign currency Record the receipt of the foreign currency Record the payment of accounts payable Answer to part one Part 1 a 1 Prepare journal entries to record Maples import and export transactions during 20X5 and 20X6 Date Debit Credit 20X5 Mar 1 Accounts Receivable (C$) $31,200 00 Sales $31,200 00 Record the sale of goods (C$48,000 x $ 65 spot rate) May 30 Accounts Receivable (C$) $1,440 00 Foreign Currency Transaction Gain $1,440 00 Record the foreign currency transaction gain C$48,000 x ($ 68 65) Foreign Currency Units (C$) $32,640 00 Accounts Receivable (C$) $32,640 00 Record the collection of accounts receivable (C$48,000 x $ 68 Spot Rate) Cash $32,640 00 Foreign Currency Units (C$) $32,640 00 Record the cash received a 2 July 1 No entry is recorded when the contract to purchase equipment is signed Record the commitment to purchase the equipment Aug 30 Equipment 43,680 Accounts Payable () $43,680 00 Record the purchase of the equipment (420,000 x $ 104) Oct 29 Foreign Currency Transaction Loss 840 Accounts Payable () 840 Record the revaluation of the foreign currency 420,000 x ($ 106 $ 104) Foreign Currency Units () 44,520 Cash 44,520 Record the receipt of foreign currency (4200,000 x $ 106 ) Accounts Payable () 44,520 Cash 44,520 Record the payment of accounts payable a 3 November 16, 20X5 Inventory 46,200 00 Accounts Payable () 46,200 00 Record the purchase of inventory 28,000 x $1 65 Dec 31 Accounts Payable () 560 00 Foreign Currency Transaction Gain 560 00 Record the revaluation of the foreign currency 28,000 x ($1 63 $1 65) Jan 15 20X6 Foreign Currency Transaction Loss 280 00 Accounts Payable () 280 00 Record the revaluation of the foreign currency (28,000 x ($1 64 $1 63) Foreign Currency Units () 45,920 00 Cash 45,920 00 Record the receipt of foreign currency (28,000 x $1 64 ) Accounts Payable () 45,920 00 Foreign Currency Units () 45,920 00 b What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X5 Foreign currency transaction gain from transaction denominated in pounds 560 00 Foreign currency transaction gain from transaction denominated in Canadian dollars 1440 00 Less foreign currency transaction loss from transaction denominated in yen 840 00 Foreign currency transaction gain for 20X5 1,160 00 Part II Assume that Maple used forward contracts to manage the foreign currency risks of all of its export and import transactions during 20X5 1 On March 1, 20X5, Maple, anticipating a weaker Canadian dollar on the May 30, 20X5, settlement date, entered into a 90 day forward contract to sell C$48,000 at a forward exchange rate of C$1 $0 64 The forward contract was not designated as a hedge 2 On July 1, 20X5, Maple, anticipating a strengthening of the yen on the October 29, 20X5, settlement date, entered into a 120 day forward contract to purchase 420,000 at a forward exchange rate of 1 $0 105 The forward contract was designated as a fair value hedge of a firm commitment 3 On November 16, 20X5, Maple, anticipating a strengthening of the pound on the January 15, 20X6, settlement date, entered into a 60 day undesignated forward exchange contract to purchase 28,000 at a forward exchange rate of 1 $1 67 a 1 repare journal entries to record Maples foreign currency activities during 20X5 and 20X6 Record the entry for the 90 day forward contract signed for the forecasted foreign currency transaction Record the revaluation of the foreign currency Record the payment to the exchange broker in accordance with the forward contract Record the receipt of cash from the exchange broker a 2 Record the entry for the 120 day forward contract signed for the forecasted foreign currency transaction Record the revaluation of the foreign currency Record the loss on the financial instrument aspect of the firm commitment Record the acquisition of the equipment Record the revaluation of the foreign currency Record the payment of cash to the exchange broker Record the receipt of foreign currency a 3 Record the entry for the signed 60 day undesignated forward contract Record the revaluation of the foreign currency Record the revaluation of the foreign currency Record the payment of cash to the exchange broker Record the receipt of foreign currency b What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X5 if Parts I and II of this problem were combined c What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X6 if Parts I and II of this problem were combined

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I have part 1 already answered which I will provide below, I just need part two answered now. Thank you so much for your help

I have part 1 already answered which I will provide below, I just need part two answered now. Thank you so much for your help

Part I Maple Company had the following export and import transactions during 20X5:

1. On March 1, Maple sold goods to a Canadian company for C$48,000, receivable on May 30. The spot rates for Canadian dollars were C$1 = $0.65 on March 1 and C$1 = $0.68 on May 30.

2. On July 1, Maple signed a contract to purchase equipment from a Japanese company for 420,000. The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with payment due in 60 days on October 29. The spot rates for yen were 1 = $0.102 on July 1, 1 = $0.104 on August 30, and 1 = $0.106 on October 29. The 60-day forward exchange rate on August 30, 20X5, was 1 = $0.1055.

3. On November 16, Maple purchased inventory from a London company for 28,000, payable on January 15, 20X6. The spot rates for pounds were 1 = $1.65 on November 16, 1 = $1.63 on December 31, and 1 = $1.64 on January 15, 20X6. The forward rate on December 31, 20X5, for a January 15, 20X6, exchange was 1 = $1.645. Required: Prepare journal entries to record Maples import and export transactions during 20X5 and 20X6. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.

a.1 Prepare journal entries to record Maples import and export transactions during 20X5 and 20X6

Record the sale of goods.

Record the foreign currency transaction gain.

Record the collection of accounts receivable.

Record the cash received

a.2

Record the commitment to purchase the equipment.

Record the purchase of the equipment.

Record the revaluation of the foreign currency.

Record the receipt of foreign currency.

Record the payment of accounts payable.

a.3

ecord the purchase of inventory.

Record the revaluation of the foreign currency.

Record the receipt of the foreign currency.

Record the payment of accounts payable.

Answer to part one:

Part 1
a.1 Prepare journal entries to record Maples import and export transactions during 20X5 and 20X6
Date		Debit	Credit
20X5
Mar.1	Accounts Receivable (C$)	$31,200.00
	Sales		$31,200.00
	Record the sale of goods. (C$48,000 x $.65 spot rate)

May 30	Accounts Receivable (C$)	$1,440.00
	Foreign Currency Transaction Gain		$1,440.00
	Record the foreign currency transaction gain [C$48,000 x ($.68 - .65)]

	Foreign Currency Units (C$)	$32,640.00
	Accounts Receivable (C$)		$32,640.00
	Record the collection of accounts receivable (C$48,000 x $.68 Spot Rate)

	Cash	$32,640.00
	Foreign Currency Units (C$)		$32,640.00
	Record the cash received

a.2
July 1	No entry is recorded when the contract to purchase equipment is signed
	Record the commitment to purchase the equipment.
Aug 30	Equipment	43,680
	Accounts Payable ()		$43,680.00
	Record the purchase of the equipment.(420,000 x $.104)

Oct 29	Foreign Currency Transaction Loss	840
	Accounts Payable ()		840
	Record the revaluation of the foreign currency.420,000 x ($.106 - $.104)

	Foreign Currency Units ()	44,520
	Cash		44,520
	Record the receipt of foreign currency. (4200,000 x $.106 )

	Accounts Payable ()	44,520
	Cash		44,520
	Record the payment of accounts payable.

a.3
November 16, 20X5	Inventory	46,200.00
	Accounts Payable ()		46,200.00
	Record the purchase of inventory.[28,000 x $1.65]

Dec.31	Accounts Payable ()	560.00
	Foreign Currency Transaction Gain		560.00
	Record the revaluation of the foreign currency. 28,000 x ($1.63 - $1.65)

Jan.15 20X6	Foreign Currency Transaction Loss	280.00
	Accounts Payable ()		280.00
	Record the revaluation of the foreign currency.(28,000 x ($1.64 - $1.63)

	Foreign Currency Units ()	45,920.00
	Cash		45,920.00
	Record the receipt of foreign currency. (28,000 x $1.64 )

	Accounts Payable ()	45,920.00
	Foreign Currency Units ()		45,920.00

b.
What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X5?
	Foreign currency transaction gain from transaction denominated in pounds	560.00
	Foreign currency transaction gain from transaction denominated in Canadian dollars	1440.00
	Less : foreign currency transaction loss from transaction denominated in yen	-840.00
	Foreign currency transaction gain for 20X5	1,160.00

Part II

Assume that Maple used forward contracts to manage the foreign currency risks of all of its export and import transactions during 20X5.

On March 1, 20X5, Maple, anticipating a weaker Canadian dollar on the May 30, 20X5, settlement date, entered into a 90-day forward contract to sell C$48,000 at a forward exchange rate of C$1 = $0.64. The forward contract was not designated as a hedge.

On July 1, 20X5, Maple, anticipating a strengthening of the yen on the October 29, 20X5, settlement date, entered into a 120-day forward contract to purchase 420,000 at a forward exchange rate of 1 = $0.105. The forward contract was designated as a fair value hedge of a firm commitment.

On November 16, 20X5, Maple, anticipating a strengthening of the pound on the January 15, 20X6, settlement date, entered into a 60-day undesignated forward exchange contract to purchase 28,000 at a forward exchange rate of 1 = $1.67.

a.1

repare journal entries to record Maples foreign currency activities during 20X5 and 20X6.

Record the entry for the 90-day forward contract signed for the forecasted foreign currency transaction.

Record the revaluation of the foreign currency.

Record the payment to the exchange broker in accordance with the forward contract.

Record the receipt of cash from the exchange broker.

a.2

Record the entry for the 120-day forward contract signed for the forecasted foreign currency transaction.

Record the revaluation of the foreign currency.

Record the loss on the financial instrument aspect of the firm commitment.

Record the acquisition of the equipment.

Record the revaluation of the foreign currency.

Record the payment of cash to the exchange broker.

Record the receipt of foreign currency.

a.3

Record the entry for the signed 60-day undesignated forward contract.

Record the revaluation of the foreign currency.

Record the payment of cash to the exchange broker.

Record the receipt of foreign currency.

b.What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X5 if Parts I and II of this problem were combined

c.	What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X6 if Parts I and II of this problem were combined?