On December $1,20$X$1,$ Micro World Incorporation entered into a $120-$day forward contract to sell $100,000$ Australian dollars $($A$$).$ Micro

World's fiscal year ends on December $31.$ The direct exchange rates follow:

Required:

Prepare all journal entrles for Micro World Incorporated for the following Independent situations.

The forward contract was to manage the foreign currency risks from the sale of furniture for $A$$$100,000$ on December $1,201,$ with

payment due on March $31,20$x$2$ The forward contract is not designated as a hedge.

The forward contract was to hedge an anticlpated sale of furniture on January $30.$ The sale took place on January $30$ with payment

due on March $31,20$X$2.$ The derlvative is designated as a cash flow hedge. The company uses the forward exchange rate to

measure hedge effectlveness.

The forward contract was for speculative purposes only.

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The forward contract was for speculative purposes only.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.