Marked out of 2.00 question Option contract designated as a cash flow hedge of a forecasted foreign-currency-denominated sales transaction, strengthening SUS On January 5, 2019, our company receives a nonbinding purchase order for sale of merchandise to a customer in Slovakia, with delivery of the merchandise scheduled for June 30, 2019 The customer preliminarily agreed to pay 650,000 for the merchandise, and payment is due from the customer upon delivery. On January 5, 2019, our company also purchases an option) that gives our company the right to sell (ie, put) 650,000 on any date until June 30, 2019 0e, it is an "American-style" option) for $1.281 (e, the spot rate on January 5, 2015). On January 5, 2019, the fair value of the option (ie, the option premium) is $19,500, in addition, our company elected to immediately include in the determination of net income all of the change in option value attributable to factors excluded from the assessment of hedge effectiveness 0.e., the non-intrinsic-value components, like time value). The relevant exchange rates and related balances for the period from January 5, 2019, to June 30, 2019, are as follows: Option Contract Spot Rate Sale Date Jen 2019 120 (SUS(1) Transaction Value Value $10,500 Change Changs in Other Change in Fair Intrinsic Intrinsic Sources in Other Value Value of Value Value $19.500 Mar 31, 2019 123 Jun 30, 2019 1.39 44,200 $24,700 $32,500 $775,500 58.500 14.300 56.500 $32.500 11.700 7800 26000 11.70 Derived from an option pricing model such as the Black-Scholes model 6650,000-$1.281)-(650,000-$1.231) 650,000-$1.28 (1)-(650,000-$1.1961) Fair value-intrinsic value (e. equals the residual fair value derived from all sources except for intrinsic value) a Prepare the journal entries to record all the adjustments required for the forecasted sale and option contract on January 5, 2015, March 31, 2019, and June 30, 2019 Note: If no entry is required, select "No entry as your answers under Description and leave the debit and credit answers blank (zero) Hedged Transaction Date 1/5/19 Description Deb Credit MAR 26 tv FedReal Dres