No hand writing please
Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with payment of 31,000 korunas to be received on March 1, 2016. Brandlin enters into a forward contract on December 1, 2015, to sell 31,000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2015 December 31, 2015 March 1, 2016 Spot Rate $ 4.20 4.30 4.45 Forward Rate (to March 1, 2016) $ 4.275 4.400 N/A Brandlin's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31. a-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) a-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 N 3 4 5 6 7 8 12 > Record the sales and foreign currency account receivable. Note: Enter debits before credits. General Journal Debit Credit Date 12/01/2015 Record entry Clear entry View general journal X 1 Record the sales and foreign currency account receivable. 2 Record the forward contract. 3 3 Record the entry for changes in the exchange rate. 4 Record the change in the fair value of the forward contract. 5 5 Record the gain or loss on the forward contract. 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. Note: journal entry has been entered View transaction list X: 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. 8 Record the entry to adjust the carrying value of the forward contract to its current fair value. 9 Record the gain or loss on the forward contract. 10 Record the allocation of the premium or discount. 11 Record the receipt of korunas from the foreign customer. 12 Record the settlement of the forward contract. Note : = journal entry has been entered a-2. What is the impact on 2015 net income? (Do not round intermediate calculations.) Impact on 2015 net income a-3. What is the impact on 2016 net income? (Do not round intermediate calculations.) Impact on 2016 net income 2-4. What is the impact on net income over the two accounting periods ? (Do not round intermediate calculations.) Impact on net income b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) View transaction list Journal entry worksheet Record the sales and foreign currency account receivable. Note: Enter debits before credits. General Journal Debit Credit Date 12/01/2015 Record entry Clear entry View general journal View transaction list X: 1 Record the sales and foreign currency account receivable. 2 Record the forward contract. 3 Record the entry for changes in the exchange rate. 4 Record the change in the fair value of the forward contract. 5 5 Record the gain or loss on the forward contract. 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. Note : = journal entry has been entered View transaction list 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. 8 Record the entry to adjust the carrying value of the forward contract to its current fair value. 9 Record the gain or loss on the forward contract. 10 Record the allocation of the premium or discount. 11 Record the receipt of korunas from the foreign customer. 12 Record the settlement of the forward contract. Note : = journal entry has been entered b-2. What is the impact on 2015 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Impact on 2015 net income b-3. What is the impact on 2016 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Impact on 2016 net income b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.) Impact on net income Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with payment of 31,000 korunas to be received on March 1, 2016. Brandlin enters into a forward contract on December 1, 2015, to sell 31,000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2015 December 31, 2015 March 1, 2016 Spot Rate $ 4.20 4.30 4.45 Forward Rate (to March 1, 2016) $ 4.275 4.400 N/A Brandlin's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31. a-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) a-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 N 3 4 5 6 7 8 12 > Record the sales and foreign currency account receivable. Note: Enter debits before credits. General Journal Debit Credit Date 12/01/2015 Record entry Clear entry View general journal X 1 Record the sales and foreign currency account receivable. 2 Record the forward contract. 3 3 Record the entry for changes in the exchange rate. 4 Record the change in the fair value of the forward contract. 5 5 Record the gain or loss on the forward contract. 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. Note: journal entry has been entered View transaction list X: 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. 8 Record the entry to adjust the carrying value of the forward contract to its current fair value. 9 Record the gain or loss on the forward contract. 10 Record the allocation of the premium or discount. 11 Record the receipt of korunas from the foreign customer. 12 Record the settlement of the forward contract. Note : = journal entry has been entered a-2. What is the impact on 2015 net income? (Do not round intermediate calculations.) Impact on 2015 net income a-3. What is the impact on 2016 net income? (Do not round intermediate calculations.) Impact on 2016 net income 2-4. What is the impact on net income over the two accounting periods ? (Do not round intermediate calculations.) Impact on net income b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) View transaction list Journal entry worksheet Record the sales and foreign currency account receivable. Note: Enter debits before credits. General Journal Debit Credit Date 12/01/2015 Record entry Clear entry View general journal View transaction list X: 1 Record the sales and foreign currency account receivable. 2 Record the forward contract. 3 Record the entry for changes in the exchange rate. 4 Record the change in the fair value of the forward contract. 5 5 Record the gain or loss on the forward contract. 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. Note : = journal entry has been entered View transaction list 6 Record the allocation of the premium or discount. 7 Record the entry for changes in the exchange rate. 8 Record the entry to adjust the carrying value of the forward contract to its current fair value. 9 Record the gain or loss on the forward contract. 10 Record the allocation of the premium or discount. 11 Record the receipt of korunas from the foreign customer. 12 Record the settlement of the forward contract. Note : = journal entry has been entered b-2. What is the impact on 2015 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Impact on 2015 net income b-3. What is the impact on 2016 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Impact on 2016 net income b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.) Impact on net income
