Pacifico Company, a US-based Importer of beer and wine purchased 1000 cases of Oktoberfest-style beer from a German supplier for 50.000 euros. Relevant US dollar exchange rates for the euro are as follows: Date August 19 September October 15 Spot Rate 11.10 1.15 1.18 Forward to October 15 $ 1.16 1.10 1.18spot) Call Option Press for beta 15 strike iz 31.10) Sales 06 NA The company closes its books and prepares third quarter financial statements on September 30, int rences 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 risk. Prepare journal entries to account for this import purchase b. Assume that the beer arrived 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 50.000 euros. The company designated the forward contract as a cash flow hedge of a foreign currency payable. Forward points are excluded in assessing hedge effectiveness and amortized to net income using a straight-line method on a monthly basis. Prepare Journal 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 arrived and the company paid for it on October 15. On August 15, the company entered into a two- month forward contract to purchase 50.000 euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The far value of the firm commitment is measured by referring 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 firm commitment and import purchase d. Assume that the company ordered the beer on August 15. The beer arrived and the company paid for on October 15. On August 15. the company purchased a two-month call option on 50,000 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 hedge effectiveness, and the change in ime value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option foreign currencyfim commitment, and import purchase. e. Assume that on August 15, the company forecasted the purchaselbeer on October 15 on August 15, the company acquired a two-month call option on 50.000 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 nrom the assessment of hedge effectiveness and the change in time value is recognized in net income over the fe 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. Required Recured B Required Required Required 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 the port purchase of entry is required for transactievent at Ne journal entry required in the first account field. Do not round istmediate clos) View transactions Journal entry worksheet Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E 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 transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 5 Record the purchase of 1000 cases of Oktoberfest-style beer from a German supplier. Note: Enter debits before credits General Journal Debit Date 00:15 Credit Record entry Clear entry View general journal Rude Complete this question by entering your answers in the tabs below. Required A Required B Required Required Required E Assume that the beer arrived 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 50.000 euros. The company designated the forward contract as a cash flow hedge of a foreign currency payable Forward points are excluded in assessing hade effectiveness and more to set income using a straight-line method on a monthly basis. Prepare journal entries to account for the import purchase and foreign currency forward contract of me entry is required for a transaction/event, select "Ne journal entry required in the first account. Do not found intermediate calculations.) Show less View transactions Journal entry worksheet 1 2 5 6 7 11 > Record the purchase of 1000 cases of Oktoberfest-style bear from a German supplier Noter dubta bore credits Date 0001 Debit Crede Record entry Charly Reged A Rec Complete this question by entering your answers in the tabs below. Required A Required a Required Required Required 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 entered into a bue-month foncard contract to purchase 50.000 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 referring to changes in the forward rate. Forward points are not excluded in assessing hedge affectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency form commitment and import purchase. If no entry is required for a transaction/event, select "No journal entry required in the first account held. Do not round intermediate calculations.) Show less View transaction ist Journal entry worksheet Racord entry placed for purchase of Bee General Journal 06/18 Record entry View general mana Book Complete this question by entering your answers in the tabs below. Print Required A Required B Required Required D Required Assume that the company ordered the beer on August 15. The beer arrived and the company paid for a on October 15. On August 15 the company purchased a bee-month call option on 50.000 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 ferring to changes in the spot rate. The time value of the option is excluded from the esment 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. (Il ne entry required for transaction/event select's journal entry required in the first account field. De not round intermediate calculations.) Show less View bransaction list Journal entry worksheet 1 2 3 4 5 6 8 9 > Record the gain or loss on the foreign currency eure caloption with a premium of $0.05 per Eurest price of $1.10 and an aver date of October 15 trer des bored Date 08/15 Required A Required B Required c Required D Required 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 50,000 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 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.) Show less View transaction list Journal entry worksheet Record the gain or loss on the foreign currency euro call option with premium of $0.05 per Euro at a strike price of $1.10 and an exercise date of October 15, Note Enter debits before credits General Journal Date 08/15 Dobit Credit Record en