On October 1, Year 6, Versatile Company contracted to sell merchandise to a customer in Switzerland at a selling price of CHF448,000. The contract called for the merchandise to be delivered to the customer on January 31, Year 7. with payment due on delivery. On October 1, Year 6, Versatile arranged a forward contract to deliver CHF448,000 on January 31, Year 7, at a rate of CHF1 = $2.21. Versatile's year-end is December 31. The merchandise was delivered on January 31, Year 7. and CHF448.000 were received and delivered to the bank. Exchange rates were as follows: Spot Rates Forward Rates* * October 1, Year 6 CHF1 - $2-19 CHF1 - $2.21 December 31, Year 6 CHF1 = $2.22 CHF1 = $2.23 January 31, Year 7 CHF1 = $2.20 CHF1 = $2.20 "For contracts expiring on January 31, Year 7. Required: (a) Prepare the journal entries (using net method) that Versatile should make to record the events described assuming that the forward contract is designated as a cash flow hedge. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "O" wherever required.) Date General Journal Debit Credit October 1, Year 6 Receivable from bank 990080 Forward contract 990080 Record the forward contract. December 31, Year 6 Other comprehensive income 4480 Forward contract 4480 Record the adjustment of forward contract to forward rate. January 31, Year 7 Cash (CHF) Sales Record the sales. Forward contract Other comprehensive income Record the adjustment of forward contract to forward rate. Commitment receivable Sales Record the adjustment of other comprehensive income. Cash Forward contract Cash (CHF) Record the forward contract with bank. b) Prepare a partial trial balance of the accounts used as at December 31, Year 6. (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.) Partial trial balance December 31, Year 6 Account Debit (Click to select (Click to select (c) Prepare the journal entries (using net method) that Versatile should make to record the events described, assuming that the forward contract is designated as a fair value hedge. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "O" wherever required.) Date General Journal Debit Credit October 1, Year 6 (Click to select) (Click to select) Record the forward contract. December 31, Year 6 (Click to select) [(Click to select) Record the adjustment of forward contract to forward rate. (Click to select) [(Click to select) Record the adjustment of upcoming accounts receivable value to the forward rate. January 31, Year 7 (Click to select) [(Click to select) Record the sales. (Click to select) [(Click to select) Record the adjustment of forward contract to forward rate. (Click to select) [(Click to select) Record the adjustment of upcoming accounts receivable value to the forward rate. (Click to select) (Click to select) Record to clear other commitment receivable to sales account. (Click to select) [(Click to select) (Click to select) Record the forward contract with bank. (d) Prepare a partial trial balance of the accounts used as at December 31, Year 6. (Leave no cells blank - be certain to enter "(" wherever required. Omit $ sign in your response.) Partial trial balance December 31, Year 6 Account Debit Credit (Click to select) (Click to select) (Click to select)