On November $1,2023,$ Cheng Company $($a U$.$S$.$based company$)$ forecasts the purchase of goods from a foreign supplier for $300,000$ yuan. Cheng expects to receive the goods on April $30,2024,$ and make immediate payment. On November $1,2023,$ Cheng enters into a six$-$month forward contract to buy $300,000$ yuan. The company properly designates the forward contract as a cash flow hedge of a forecasted foreign currency transaction. Forward points are excluded in assessing hedge effectiveness and are amortized to net apply:

$\backslash$table$[[$Date$,$Spot Rate,Forward Rate $($to$],[$April $30,2024),,]]$

As expected, Cheng receives goods from the foreign supplier on April $30,2024,$ and pays $300,000$ yuan immediately. Cheng sells the imported goods in the local market in May $2024.$

Required:

a$.$ Prepare all journal entries, including December $31$ adjusting entries, to record the foreign currency forward contract and import purchase.

b$.$ What is the impact on net income in $2023?$

c$.$ What is the impact on net income in $2024?$

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Req B and C

Prepare all journal entries, including December $31$ adjusting entries, to record the foreign currency forward contract and import purchase.

Note: Do not round intermediate calculations. If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the

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$4$ of $5$

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