Journal entry:

1. Record the purchase of materials.

2. Record the forward contract.

3.Record the entry to revalue the foreign currency account payable.

4.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 entry to adjust the net amount recognized as foreign exchange gain or loss to reflect the amortization of the forward contract premium or discount.

7. Record the entry to revalue the foreign currency account receivable.

8.Record the entry to adjust the carrying value of the forward contract to its current fair value.

9. Record the foreign exchange gain or loss on the forward contract.

10. Record the entry to adjust the net amount recognized as foreign exchange gain or loss to reflect the amortization of the forward contract premium or discount.

11. Record the settlement of the forward contract.

12. Record the payment of dinars to the foreign supplier.

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.)

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a-2.	Impact on 2020 net income
a-3.	Impact on 2021 net income
a-4.	Impact on net income over 2020 and 2021

fair value hedge:

b1. all the journal entry question as above: ?

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.)

b-2.	Impact on 2020 net income
	Impact on 2021 net income
b-3.	Impact on net income over 2020 and 2021

PLEASE HELP! THANK YOU SO VERY MUCH!!

Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 12,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 12,000 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 Spot Rate $ 3.00 3.10 3.25 Forward Rate (to March 1, 2021) $ 3.075 3.200 N/A Icebreaker must close its books and prepare financial statements at December 31. Company purchases materials from a foreign supplier on December 1, 2020, with payment of 12,000 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, Brandlin enters into a forward contract to purchase 12,000 dinars on March 1, 2021. 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. 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 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