On June 1, Maxwell Corporation (a U.S.-based company) sold goods to a foreign customer at a price of 1,000,000 pesos and will receive payment in three months on September 1. On June 1, Maxwell acquired an option to sell 1,000,000 pesos in three months at a strike price of $0.062. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Relevant exchange rates and option premia for the peso are as follows: Date June 1 June 30 September 1 Spot Rate $ 0.062 0.061 0.060 Put Option Premium for September 1 (strike price $0.062) $ 0.0025 0.0022 N/A Maxwell must close its books and prepare its second-quarter financial statements on June 30. a-1. Assuming that Maxwell designates the foreign currency option as a cash flow hedge of a foreign currency receivable, prepare journal entries for the export sale and related hedge in U.S. dollars. a-2. What is the impact on net income over the two accounting periods? b-1. Assuming that Maxwell designates the foreign currency option as a fair value hedge of a foreign currency receivable, prepare journal entries for the export sale and related hedge in U.S. dollars. b-2. What is the impact on net income over the two accounting periods? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg B2 Assuming that Maxwell designates the foreign currency option as a cash flow hedge of a foreign currency receivable, prepare journal entries for the export sale and related hedge in U.S. dollars. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 06/01 62,000 Accounts receivable (P) Sales 62,000 2 06/01 2,500 Foreign currency option Cash 2,500 3 06/30 1,000 Foreign exchange gain or loss Accounts receivable (P) O 1,000 4 06/30 Other comprehensive income Foreign currency option 5 06/30 1,000 Other comprehensive income Foreign exchange gain or loss 1,000 6 6 06/30 Foreign exchange gain or loss Other comprehensive income O 09/01 1,000 Foreign exchange gain or loss Accounts receivable (P) O 1,000 8 09/01 Other comprehensive income Foreign currency option 09/01 Other comprehensive income Foreign exchange gain or loss >> 10 09/01 Foreign exchange gain or loss Other comprehensive income 11 09/01 Foreign currency (P) Accounts receivable (P) O 12 09/01 62,000 Cash Foreign currency option Foreign currency (P) 06/01 0 62,000 Accounts receivable (P) Sales 62,000 2 06/01 2,500 Foreign currency option Cash 2,500 3 06/30 1,000 Foreign exchange gain or loss Accounts receivable (P) O 1,000 06/30 Foreign exchange gain or loss Foreign currency option lo 5 06/30 No journal entry required 6 6 06/30 No journal entry required 7 09/01 1,000 Foreign exchange gain or loss Accounts receivable (P) O 1,000 00 09/01 Foreign exchange gain or loss Foreign currency option 9 09/01 No journal entry required 10 09/01 No journal entry required 11 09/01 Foreign currency (P) Accounts receivable (P) O 12 09/01 Cash Foreign currency option O Reg A1 Req A2 Req B1 Req B2 What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. Negative amount should be entered with a minus sign.) Impact on net income