Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 28,000 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 28,000 dinars on March 1, 2021. Relevant exchange rates for the dinar on various dates are as follows: Date December 1, 2020 December 31, 2020 March 1, 2021 Spot Rate $ 4.60 Forward Rate (to March 1, 2021) $ 4.675 4.70 4.85 4.800 N/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. *-2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? *-4. What is the impact on net income over the two accounting periods? b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. b-2. What is the impact on net income in 2020 and in 2021? b-3. What is the impact on net income over the two accounting periods? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B3 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.) No Date 12/01/2020 Cost of goods sold Accounts payable (dinars) 2 12/01/2020 No journal entry required 3 12/31/2020 4 12/31/2020 General Journal Foreign exchange gain or loss Accounts payable (dinars) Forward contract Other comprehensive income 5 12/31/2020 Other comprehensive income Foreign exchange gain or loss 6 12/31/2020 Foreign exchange gain or loss Other comprehensive income 7 03/01/2021 Foreign exchange gain or loss 8 03/01/2021 Accounts payable (dinars) Forward contract Other comprehensive income 9 03/01/2021 Other comprehensive income Foreign exchange gain or loss 10 03/01/2021 Foreign exchange gain or loss Other comprehensive income 11 03/01/2021 Foreign currency (dinars) Cash Forward contract 12 03/01/2021 Accounts payable (dinars) 000 00 00 00 00 00 00 00 00 000 00 Foreign currency (dinars) < RegA1 Reg A2 to A4 > Debit Show less Credit