On October 1,2020, Mertag Company (a US, based company) recelves an order from a customer in Foland to deliver goods on January 31.2021 , for a price of 1,022,000 Polish zlotys (PLN) Mertag eniers into a forward controct on October 1.2020 , to sell PIN Mertag designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by relerning to changes in the forward rate, and, therefore, forward points are included in assessing the dge effectiveness Mertang must close its books and prepare finenciel statements on December 31 . Discounting to present velue can be ignored. a. Prepare journal entries for the foreign cutrency forward contract, foreign currency firm commitment, and expott sale. b. Determine the net benefit, if any, realized by Mertag from entering into the forward contract. (3) Answer is not complete. Complete this question by entering your answers in the tats bedaw. Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment, and export sale, (Do not acroentit field.) \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & \multicolumn{2}{|c|}{ General Joumal } & \multirow[t]{2}{*}{ Debit } & \multirow[t]{2}{*}{ Credit } \\ \hline 1 & 1001/2020 & No joumal entry required & 0 & & \\ \hline 2 & 1001/2020 & No journal entry required & 0 & & \\ \hline 3. & 12/31/2020 & Forcign exchange gain or loss & 0 & & \\ \hline 7 & & Forward contract & 0 & & \% \\ \hline 4 & 12/31/2020 & Firm commiment & 0 & & \\ \hline & & Foreign exchange gain or loss & 0 & & \\ \hline 5 & 01/31/2021 & Forward contract & 0 & & \\ \hline & & Foreign exchange gain or loss & 0 & & \\ \hline 6 & 01/31/2021 & Foreign exchange gan or lass & 0 & & \\ \hline & & Firm commtment & & & \\ \hline 7 & 01310021 & For & 0 & & \\ \hline & 01/31/2021 & \begin{tabular}{|l} Foreign currency (PLN) \\ Sates \end{tabular} & 0 & & \\ \hline & & 4+1 & & & \\ \hline 8 & 01/31/2021 & Forward contract & 0 & & \\ \hline & & Cash & 0 & & \\ \hline & & & & & \\ \hline 9 & 01/31/2021 & Sales & 0 & & \\ \hline & & Firm corrmitment & 0 & & \\ \hline \end{tabular} 0. Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment, and export sale: b. Determine the net benefit, if any, realized by Mertag from entering into the forward contract. Complete this question by entering your answers in the tabs below. Determine the net benefit, if any, realized by Mertag from entering into the forward contract. (Do not round intermediate calculations. Negative amount should be entered with a minus sign.)
