On October 1, Year 6, Wheeling Company contracted to sell merchandise to a customer in Switzerland at a selling price of CHF574,000. 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, Wheeling arranged a forward contract to deliver CHF574,000 on January 31, Year 7, at a rate of CHF1 = $1.28. Wheeling'ss year-end is December 31.

The merchandise was delivered on January 31, Year 7, and CHF574,000 were received and delivered to the bank.

Exchange rates were as follows:

	Spot Rates	Forward Rates**
October 1, Year 6	CHF1 = $1.26	CHF1 = $1.28
December 31, Year 6	CHF1 = $1.29	CHF1 = $1.30
January 31, Year 7	CHF1 = $1.27	CHF1 = $1.27

**For contracts expiring on January 31, Year 7.

Required:

(a) Prepare the journal entries (using net method) that Wheeling should make to record the events described assuming that the forward contract is designated as a cash flow hedge. For Exchange Gains/Losses - OCI account, just use OCI, and the credit or debit will determine if it is a gain/loss (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 "0" wherever required.)

Date	General Journal	Debit	Credit
October 1, Year 6	(Click to select) Receivable from bank Other comprehensive income Payable to bank Land Exchange loss No journal entry required Equipment Cash Commitment receivable
	(Click to select) Forward contract No journal entry required Land Exchange loss Equipment Commitment receivable Other comprehensive income Receivable from bank Cash
	Record the forward contract.
December 31, Year 6	(Click to select) No journal entry required Cash Other comprehensive income Land Receivable from bank Forward contract Exchange loss Equipment Commitment receivable
	(Click to select) Accounts payable Interest receivable Sales Forward contract Loan payable Exchange gain No journal entry required Bills payable Notes payable
	Record the adjustment of forward contract to forward rate.
January 31, Year 7	(Click to select) Payable to bank No journal entry required Land Commitment receivable Receivable from bank Equipment Other comprehensive income Exchange loss Cash (CHF)
	(Click to select) Bills payable Exchange gain Payable to bank Interest receivable Loan payable Sales No journal entry required Accounts payable Notes payable
	Record the sales.
	(Click to select) Receivable from bank No journal entry required Exchange loss Cash Other comprehensive income Equipment Forward contract Commitment receivable Land
	(Click to select) Bills payable Loan payable Notes payable Interest receivable No journal entry required Other comprehensive income Accounts payable Exchange gain Sales
	Record the adjustment of forward contract to forward rate.
	(Click to select) Other comprehensive income Commitment receivable Land Exchange loss Cash Payable to bank Receivable from bank Equipment No journal entry required
	(Click to select) Bills payable Accounts payable Notes payable No journal entry required Interest receivable Exchange gain Loan payable Sales Payable to bank
	Record the adjustment of other comprehensive income.
	(Click to select) Receivable from bank Payable to bank Land Equipment Other comprehensive income No journal entry required Commitment receivable Cash Exchange loss
	(Click to select) Interest receivable Accounts payable Sales Bills payable Exchange gain No journal entry required Loan payable Forward contract Notes payable
	(Click to select) Payable to bank Interest receivable Sales No journal entry required Accounts payable Notes payable Loan payable Cash (CHF) Bills payable
	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	Credit
(Click to select) Forward contract Exchange gain Sales Notes payable Loan payable Bills payable Interest receivable Accounts payable	$	$
(Click to select) Purchase Equipment Land Accounts receivable Inventory Other comprehensive income Receivable from bank Exchange loss	$	$