On June $1,$ Munchkin Corporation received an order for finished goods from a Turkish customer at a price of $500,000$ Turkish lira with a delivery date of July $31.$ On June $1,$ when the U$.$S$.$ dollar$$Turkish lira spot rate is $$0\mathrm{.}230,$ Munchkin Corporation entered into a two$-$month forward contract to sell $500,000$ lira at a forward rate of $$0\mathrm{.}240$ per lira. Munchkin designates the forward contract as a fair value hedge of the firm commitment to receive lira. The fair value of the firm commitment is measured by referring to changes in the lira forward rate, so forward points must be included in assessing hedge effectiveness of the forward contract. Munchkin delivers the goods and receives payment on July $31,$ when the U$.$S$.$ dollar$$Turkish lira spot rate is $$0\mathrm{.}236.$ On June $30,$ the Turkish lira spot rate is $$0\mathrm{.}246,$ and the forward contract has a fair value of $$2,400.$

Required:

Prepare all journal entries for Munchkin Corporation related to this transaction and hedge, and answer the following questions:

What is the net impact on Munchkin Corporation$$s net income for the quarter ended June $30,$ as a result of this forward contract hedge of a firm commitment?

What is the net impact on Munchkin Corporation$$s net income for the quarter ended September $30,$ as a result of this forward contract hedge of a firm commitment?

What is Munchkin Corporation$$s net increase or decrease in cash flow from having entered into this forward contract hedge?What is the net impact on Munchkin Corporation's net income for the quarter ended June $30,$ as a result of this forward

contract hedge of a firm commitment?

Note: Select $"$No Effect" if there is no effect.

Net impactWhat is the net impact on Munchkin Corporation's net income for the quarter ended June $30,$ as a result of this forward

contract hedge of a firm commitment?

Note: Select $"$No Effect" if there is no effect.

Net impact

Determine the net impact on Munchkin Corporation's net income for the quarter ended September $30,$ as a result of this

forward contract hedge of a firm commitment?

Note: Select $"$No Effect" if there is no effect.

Net impact

What is Munchkin Corporation's net increase or decrease in cash flow from having entered into this forward contract hedge?

Note: Select $"$No Effect" if there is no effect.