Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 14,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 14,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Date December 1, 2020 December 31, 2020 March 1, 2021 Forward Rate Spot Rate (to March 1, 2021) $3.20 3.30 3.45 $3.275 3.400 N/A Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale 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? a-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 receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. b-2. What is the impact on 2020 net income? b-3. What is the impact on 2021 net income? b-4. 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 Req A2 to A4 Req B1 Req B2 to B4 Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for the sale 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.) 1 Complete this question by entering your answers in the tabs below. 30 Req Al Req A2 to A4 Req B1 Req B2 to B4 points Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale 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.) ellook View transaction list View journal entry worksheet No Date General Journal 1 12/01/2020 Accounts receivable (dinars) Debit Credit 44,800 Sales 44,800 2 12/01/2020 No journal entry required 3 12/31/2020 Accounts receivable (dinars) 1,400 Foreign Exchange Gain or Loss 1,400 7 7 4 12/31/2020 Other comprehensive income 1,716 Forward contract 1,716 5 12/31/2020 Loss on forward contract 1,400 Other comprehensive income 1,400 12/31/2020 Other comprehensive income Premium revenue 350 8 350 7 03/01/2021 Accounts receivable (dinars) 2,100 Foreign Exchange Gain or Loss 2,100 7 B 03/01/2021 Other comprehensive income Forward contract 734 734 D 03/01/2021 Loss on forward contract 2,100 Other comprehensive income 2,100 S 10 10 03/01/2021 Other comprehensive income Premium revenue 700 700 8 11 03/01/2021 Foreign currency (dinans) 12 Accounts receivable (dinars)) 03/01/2021 Cash Forward contract Foreign currency (dinars) Reg A2 to A4 > 48.300 48.300 45,850 2,450 48.300 Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 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? (Negative amounts should be entered with a minus sign. Do not round intermediate calculations.) a-2. Impact on 2020 net income a-3. Impact on 2021 net income $ 45,150 $ 700 a-4. Impact on net income over 2020 and 2021 $ 45,850 Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, pre for the sale and foreign currency forward contract in U.S. dollars. (If no entry is required for a transaction/event, se required" in the first account field. Do not round intermediate calculations.) View transaction list View journal entry worksheet Record the sales and foreign currency account receivable. Record the forward contract. Record the entry to revalue the foreign currency account receivable. Record the change in the fair value of the forward contract. 5 Record the foreign exchange gain or loss on the forward contract. 6 Record the allocation of the premium or discount. eq B2 to B4 > Debit Credit 44,800 44,800 1,400 1,400 Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a entries for the sale 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? a-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 entries for the sale and foreign currency forward contract in U.S. dollars. b-2. What is the impact on 2020 net income? b-3. What is the impact on 2021 net income? b-4. 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 Req A2 to A4 Req B1 Req B2 to B4 b-2. What is the impact on 2020 net Income? b-3. What is the impact on 2021 net income? b-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 s b-2. Impact on 2020 net income b-3. Impact on 2021 net income b-4. Impact on net income over 2020 and 2021 < Req B1