Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1,2023 , with payment of 30,000 dinars to be recelved on March 1, 2024. Icebreaker enters into a forward contract on December 1,2023, to sell 30,000 dinars on March 1, 2024. 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: Icebreaker must close its books and prepare financial statements at December 31. Required: 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 2023 net income? a-3. What is the impact on 2024 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 2023 net income? b-3. What is the impact on 2024 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. Assuming that lcebreaker 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. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. 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. Note: 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 A Journal entry worksheet Note: Enter debits before credits. a-2. What is the impact on 2023 net income? a-3. What is the impact on 2024 net income? a-4. What is the impact on net income over the two accounting periods? Note: For all requirements, do not round intermediate calculations. Negative amounts should be entered with a minus sign. Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal for the sale and foreign currency forward contract in U.S. dollars. Note: 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 Journal entry worksheet Note: Enter debits before credits. b-2. What is the impact on 2023 net income? b3. What is the impact on 2024 net income? b-4. What is the impact on net income over the two accounting periods? Note: For all requirements, do not round intermediate calculations. Negative amounts should be entered with a minus sign
