Icebreaker Company (a U.S.-based company) purchases materials from a forelgn supplier on December 1, 2020, with payment of 19,000 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 19.000 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 $ 3.70 3.80 3.95 Forward Rate (to March 1, 2021) $ 3.775 3.900 N/A 2-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a forelgn currency payable, prepare Journal entries for the import purchase and foreign currency forward contract in U.S. dollars. a-2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? 2-4. 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? Complete this question by entering your answers in the tabs below. Req A1 Reg 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.) Show less View transaction list View journal entry worksheet NO Date General Journal Credit Debit 70.300 1 12/01/2020 70,300 2 12/01/2020 No journal entry required 3 12/31/2020 No Transaction Recorded 4 12/31/2020 No Transaction Recorded RELA1 Req A2 to A4 cebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 9,000 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 19,000 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 $ 3.70 3.80 3.95 Forward Rate (to March 1, 2021) $ 3.775 3.900 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? -3. What is the impact on 2021 net income? 2-4. What is the impact on net income over the two accounting periods? 9-1. 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. -2. What is the impact on net income in 2020 and in 2021? -3. What is the impact on net income over the two accounting periods? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to A4 Req B1 Reg B2 to B3 a-2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? a-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. Negative amounts should be entered with a minus sign.) Show less a-2 Impact on 2020 net income 2-3. Impact on 2021 net income 2-4. Impact on net income over 2020 and 2021 Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 19.000 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 19.000 dinars on March 1, 2021. Relevant exchange rates for the dinar on various dates are as follows: Spot Rate $ 3.70 Date December 1, 2020 December 31, 2020 March 1, 2021 Forward Rate (to March 1, 2021) $ 3.775 3.900 N/A 3.88 3.95 8-1. 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. a-2. What is the impact on 2020 net Income? a-3. What is the impact on 2021 net income? 2-4. 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? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to 14 Req B1 Req B2 to B3 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. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) Show less View transaction list Journal entry worksheet 2 3 4 1 5 6 7 8 ..... 12 > Record the purchase of materials. Note: Enter debits before credits. General Journal Debit Credit Date 12/01/2020 Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 19,000 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 19,000 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 $ 3.79 3.89 3.95 Forward Rate (to March 1, 2821) $ 3.775 3.900 N/A 8-1. 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. a-2. What is the impact on 2020 net Income? a-3. What is the impact on 2021 net income? 2-4. 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? Complete this question by entering your answers in the tabs below. Reg A1 Req A2 to A4 Req B1 Req B2 to B3 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? (Do not round intermediate calculations. Negative amounts should be entered with a minus sign.) 1-2 impact on 2020 net income Impact on 2021 net income 16-3. Impact on net income over 2020 and 2021