Pacifico Company, a U.S based importer of beer and wine, purchased 1,300 cases of Oktoberfest-stye beer from a German supplier for 299,000 euros. Reievant LIS dollar exchange rates for the euro are as follows: The company cioses its books and prepares third-quarter financlai statements on september 30. a. Assume that the beer arrived on August 15. and the company made payment on October 15 . There was no attempt to hedge the exposure to foreign exchange nsk. Prepare journal entries to account for this import purchase b. Assume that the beer artived on August 15, and the company made payment on October 15 . On August 15 , the company entered into a two-month forward contract to purchase 299,000 euros. The company designated the forward contract as a cash flow hedge: of a foreign currency paypie. Forward points are exclused in assessang hedge effectiveness and amortized to net income using a straght-ine method on a honthly basis. Prepare joumal entries to account for the import purchase and foreign currency forward contract. c. Assume that the company ordered the beer on August 15 . The beer arnved and the company paid for it on October 15 . On August 15, the company entered into a two-month forward contract to purchase 299,000 euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referning to changes in the forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency fim commitment, and import purchase. d. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15 . On August 15, the company purchased a two-month call option on 299,000 euros. The company designated the option as a far value hedge of a foreign currency firm commitment. The fair vatue of the firm commitment is measured by refering to changes in the spot rate. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase. e. Assume that, on August 15, the company forecasted the purchase of beer on October 15 . On August 15, the company acquired a two-month call option on 299,000 euros. The company designated the option as a cash value hedge of a forecasted foreign currency transaction The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the iffe of the option. Prepare journat entries to account for the foreign currency option and import purchase. Complete this question by entering your answers in the tabs below. Assume that the beer arrived on August 15, and the company made payment on october 15. There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. (If no entry is required for a ti transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet \langle Record the purchase of 1,300 cases of Oktoberfest-style beer from a German supplier. Notes Enter debits before crediti. Complete this guestion by contering vour answers in the tabs below. Ansume that the beer amrived on hugust. 15 , and the company made paymerit on October 15. On fugust 15, the corrpamy entired into a two-month forward contract to purchase 200,000 euros. The compary denignated the forward contract as a cash flow hedge of a forelon Currency payable. Forward points are exchuded in assessing hedge effectiveness and amortized to net incorne using a straight-line method on a monthly basis. Prepare journal entries to account for the Import purchase and foreign currency forward contract. (if no entry is reaulred for a trantaction/event, select "No fournal ontry required" in the first account field. Do not round intermediate calculations.) Shineve less Journal entry worksheet \begin{tabular}{lllllllll|l|l|l|l|} 2 & 3 & 4 & 5 & 6 & 7 & 8 & & 13 & > \\ \hline \end{tabular} Record the purchase of 1,300 cases of oktoberfest-style beer from a Getman supplier. Notei Enter debite before credits. Currency transacton. The time value of the option is excluded fromi the assessment of hedge effectiveness, and the change in time Value is recogrized in netincome over the life of the optson. Prepare joutnal entries to arcount for the foreign currency option and import purchase Complete this question by entering your answers in the tabs below. Assume that the company ordered the beer on August.15. The beer atrived and the company paid for it on October 15 . On August 15, the company entered into a two-month forward contract to purchase 299,000 euros. The coenpary designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commsitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedoe effectiveness. Prepare journal entries to account for the foreign curtency forward contract, foreign currency firm commitment, and import purchase. (If no entry is required for a transaction/event, seiect "No Journat entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Currency transaction The time value of the option is excluded from the assessment of hedge eftectiveness, and the change in time value is recognized in net income over the life of the option. Prepare joumal entres fo account for the foretgn currency option and import purchase. Complete this question by entering vour answers in the tabs below. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15. On August 15, the company purchased a two-month call option on 299,000 euros. The company designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of the option is excluded from the assessment of hedoe effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase. (If no entry is required for a transaction/event, setect "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Silecer iess currency transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import purchase Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of Required E 15. On August 15, the company acquired a twomonth call option on 299,000 euros. The company designated the ofrum as a Lasn vatue hedge of a forecasted foreign currency transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet show les a Pacifico Company, a U.S based importer of beer and wine, purchased 1,300 cases of Oktoberfest-stye beer from a German supplier for 299,000 euros. Reievant LIS dollar exchange rates for the euro are as follows: The company cioses its books and prepares third-quarter financlai statements on september 30. a. Assume that the beer arrived on August 15. and the company made payment on October 15 . There was no attempt to hedge the exposure to foreign exchange nsk. Prepare journal entries to account for this import purchase b. Assume that the beer artived on August 15, and the company made payment on October 15 . On August 15 , the company entered into a two-month forward contract to purchase 299,000 euros. The company designated the forward contract as a cash flow hedge: of a foreign currency paypie. Forward points are exclused in assessang hedge effectiveness and amortized to net income using a straght-ine method on a honthly basis. Prepare joumal entries to account for the import purchase and foreign currency forward contract. c. Assume that the company ordered the beer on August 15 . The beer arnved and the company paid for it on October 15 . On August 15, the company entered into a two-month forward contract to purchase 299,000 euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referning to changes in the forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency fim commitment, and import purchase. d. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15 . On August 15, the company purchased a two-month call option on 299,000 euros. The company designated the option as a far value hedge of a foreign currency firm commitment. The fair vatue of the firm commitment is measured by refering to changes in the spot rate. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase. e. Assume that, on August 15, the company forecasted the purchase of beer on October 15 . On August 15, the company acquired a two-month call option on 299,000 euros. The company designated the option as a cash value hedge of a forecasted foreign currency transaction The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the iffe of the option. Prepare journat entries to account for the foreign currency option and import purchase. Complete this question by entering your answers in the tabs below. Assume that the beer arrived on August 15, and the company made payment on october 15. There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. (If no entry is required for a ti transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet \langle Record the purchase of 1,300 cases of Oktoberfest-style beer from a German supplier. Notes Enter debits before crediti. Complete this guestion by contering vour answers in the tabs below. Ansume that the beer amrived on hugust. 15 , and the company made paymerit on October 15. On fugust 15, the corrpamy entired into a two-month forward contract to purchase 200,000 euros. The compary denignated the forward contract as a cash flow hedge of a forelon Currency payable. Forward points are exchuded in assessing hedge effectiveness and amortized to net incorne using a straight-line method on a monthly basis. Prepare journal entries to account for the Import purchase and foreign currency forward contract. (if no entry is reaulred for a trantaction/event, select "No fournal ontry required" in the first account field. Do not round intermediate calculations.) Shineve less Journal entry worksheet \begin{tabular}{lllllllll|l|l|l|l|} 2 & 3 & 4 & 5 & 6 & 7 & 8 & & 13 & > \\ \hline \end{tabular} Record the purchase of 1,300 cases of oktoberfest-style beer from a Getman supplier. Notei Enter debite before credits. Currency transacton. The time value of the option is excluded fromi the assessment of hedge effectiveness, and the change in time Value is recogrized in netincome over the life of the optson. Prepare joutnal entries to arcount for the foreign currency option and import purchase Complete this question by entering your answers in the tabs below. Assume that the company ordered the beer on August.15. The beer atrived and the company paid for it on October 15 . On August 15, the company entered into a two-month forward contract to purchase 299,000 euros. The coenpary designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commsitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedoe effectiveness. Prepare journal entries to account for the foreign curtency forward contract, foreign currency firm commitment, and import purchase. (If no entry is required for a transaction/event, seiect "No Journat entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Currency transaction The time value of the option is excluded from the assessment of hedge eftectiveness, and the change in time value is recognized in net income over the life of the option. Prepare joumal entres fo account for the foretgn currency option and import purchase. Complete this question by entering vour answers in the tabs below. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for it on October 15. On August 15, the company purchased a two-month call option on 299,000 euros. The company designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of the option is excluded from the assessment of hedoe effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase. (If no entry is required for a transaction/event, setect "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Silecer iess currency transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import purchase Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of Required E 15. On August 15, the company acquired a twomonth call option on 299,000 euros. The company designated the ofrum as a Lasn vatue hedge of a forecasted foreign currency transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import purchase. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet show les a