Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Icebreaker Company (a U.S,-based company) sells parts to a forelgn customer on December 1, 2020, with payment of 32,000 dinars to be recelved on March

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Icebreaker Company (a U.S,-based company) sells parts to a forelgn customer on December 1, 2020, with payment of 32,000 dinars to be recelved on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 32.000 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: Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that lcebreaker designates the forward contract as a cash flow hedge of a foreign currency recelvable, prepare joumal 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. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare jourral entries for the sale and foreign currency forward contract in U.S. dolkars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fint Do not round infermediate calculations.) Journal entry worksheet b-3. What is the impacton 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. 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.) Assuming that Icebreaker designates the forward contract as a fair value hedge of a forelgn currency receivable, prepare journal entries for the sale and forelign 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 fleld. Do not round intermediate calculations.) Show less a Journal entry worksheet 345678.12 Record the sales and foreign currency account receivable. Note: Enter debits before credits: 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 lcebreaker designates the forward contract as a falr 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. 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 sign.) Icebreaker Company (a U.S,-based company) sells parts to a forelgn customer on December 1, 2020, with payment of 32,000 dinars to be recelved on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 32.000 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: Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that lcebreaker designates the forward contract as a cash flow hedge of a foreign currency recelvable, prepare joumal 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. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare jourral entries for the sale and foreign currency forward contract in U.S. dolkars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fint Do not round infermediate calculations.) Journal entry worksheet b-3. What is the impacton 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. 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.) Assuming that Icebreaker designates the forward contract as a fair value hedge of a forelgn currency receivable, prepare journal entries for the sale and forelign 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 fleld. Do not round intermediate calculations.) Show less a Journal entry worksheet 345678.12 Record the sales and foreign currency account receivable. Note: Enter debits before credits: 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 lcebreaker designates the forward contract as a falr 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. 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 sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

3rd Edition

0070967601, 978-0070967601

More Books

Students also viewed these Accounting questions

Question

What leadership style would best characterize Adam Neumann?

Answered: 1 week ago