On November 1, 2020, Cheng Company (a U S based company) forecasts the purchase of goods from a foreign supplier for 280,000 yuan Cheng expects to receive the goods on April 30, 2021, and make immediate payment On November 1, 2020, Cheng enters into a six month forward contract to buy 280,000 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 income using a straight line method on a monthly basis over the life of the contract The following U S dollarYuan exchange rates apply As expected, Cheng receives goods from the foreign supplier on April 30, 2021, and pays 280,000 yuan immediately Cheng sells the imported goods in the local market in May 2021 Prepare all journal entries, including December 31 adjusting entries, to record the foreign currency forward contract and import purchase What is the impact on net income in 2020 What is the impact on net income in 2021 Required A (Total of 9 journal entries) Required B C Please post complete correct answers 3rd time posting this question ( Thank you Date November 1, 2e2e December 31, 2020 April 30, 2021 Spot Rate $ 8 39 8 38 9 36 Forward Rate (to April 30, 2021) $0 375 0 350 N A Reg A Reg Bandc Prepare all journal entries, including December 31 adjusting entries, to record the foreign currency forward contract and import purchase (Do not round intermediate calculations If no entry is required for a transaction event, select No journal entry required in the first account field ) View transaction list Journal entry worksheet Record the entry to close accumulated other comprehensive income Note Enter debits before credits Date General Journal Debit Credit 04 30 2021 Record entry Clear entry View general journal Reg A Reg B and b What is the impact on net income in 2020 c What is the impact on net income in 2021 (Negative amounts should be entered with a minus sign Do not round intermediate calculations ) b Impact on net income in 2020 Impact on net income in 2021 c

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On November 1, 2020, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a foreign supplier for 280,000 yuan. Cheng expects to receive

On November 1, 2020, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a foreign supplier for 280,000 yuan. Cheng expects to receive the goods on April 30, 2021, and make immediate payment. On November 1, 2020, Cheng enters into a six-month forward contract to buy 280,000 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 income using a straight-line method on a monthly basis over the life of the contract. The following U.S. dollarYuan exchange rates apply: image text in transcribed

As expected, Cheng receives goods from the foreign supplier on April 30, 2021, and pays 280,000 yuan immediately. Cheng sells the imported goods in the local market in May 2021.

Prepare all journal entries, including December 31 adjusting entries, to record the foreign currency forward contract and import purchase.
What is the impact on net income in 2020?
What is the impact on net income in 2021?

Required A: (Total of 9 journal entries)

image text in transcribed

Required B & C

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Please post complete & correct answers! 3rd time posting this question :(

Thank you!

Date November 1, 2e2e December 31, 2020 April 30, 2021 Spot Rate $ 8.39 8.38 9.36 Forward Rate (to April 30, 2021) $0.375 0.350 N/A Reg A Reg Bandc Prepare all journal entries, including December 31 adjusting entries, to record the foreign currency forward contract and import purchase. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to close accumulated other comprehensive income. Note: Enter debits before credits. Date General Journal Debit Credit 04/30/2021 Record entry Clear entry View general journal Reg A Reg B and b. What is the impact on net income in 2020? c. What is the impact on net income in 2021? (Negative amounts should be entered with a minus sign. Do not round intermediate calculations.) b. Impact on net income in 2020 Impact on net income in 2021 c