On November 1, 2020, Cheng Company (a U S based company) forecasts the purchase of goods from a foreign supplier for 150,000 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 150,000 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 Date Spot Rate Forward Rate (to April 30, 2021) November 1, 2020 $ 0 26 $ 0 245 December 31, 2020 0 25 0 220 April 30, 2021 0 23 N A As expected, Cheng receives goods from the foreign supplier on April 30, 2021, and pays 150,000 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 HELP WITH ALL MISSING AMOUNTS THANKS Complete this question by entering your answers in the tabs below 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 )

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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 150,000 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 150,000 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 150,000 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:

Date	Spot Rate		Forward Rate (to April 30, 2021)
November 1, 2020	$	0.26	$	0.245
December 31, 2020		0.25		0.220
April 30, 2021		0.23		N/A

As expected, Cheng receives goods from the foreign supplier on April 30, 2021, and pays 150,000 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?

image text in transcribed HELP WITH ALL MISSING AMOUNTS THANKS

Complete this question by entering your answers in the tabs below. 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.)