Pacifico Company, a U.S.-based importer of beer and wine, purchased 1,900 cases of Oktoberfest-style beer from a German supplier for 551,000 euros. Relevant U.S. dollar exchange rates for the euro are as follows: The company closes its books and prepares third-quarter financial 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 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 551,000 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 551,000 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 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 it on October 15 . On August 15 , the company purchased a two-month call option on 551,000 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 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 551,000 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. 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 transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 56 Record the purchase of 1,900 cases of Oktoberfest-style beer from a German supplier. Note: Enter debits before credits. 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 transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 56 Record the entry to adjust the value of the euros to the new spot rate. Note: Enter debits before credits. 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 transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 56 Record the entry to adjust the value of the euros to the new spot rate. Note: Enter debits before credits. 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 transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Record the entry to adjust the value of the euros to the new spot rate. Note: Enter debits before credits. 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. On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 Note: Enter debits before credits. 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. On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 To record a foreign exchange loss on the forward contract to offset the foreign exchange gain on the accounts payable. Note: Enter debits before credits. 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 . On August 15 , the company entered into a two-month forward contract to purchase 551,000 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. (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 Journal entry worksheet 1345 Record the foreign exchange loss for the third quarter. Note: Enter debits before credits. 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 . On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 12345 813> Record the entry for gain or loss on the forward contract on the payment date when the spot exchange rate is $1.53 per Euro. Note: Enter debits before credits. 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 . On August 15 , the company entered into a two-month forward contract to purchase 551,000 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. (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 Journal entry worksheet 1345 Record the foreign exchange loss for the third quarter. Note: Enter debits before credits. 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 . On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 12345 813> Record the entry for gain or loss on the forward contract on the payment date when the spot exchange rate is $1.53 per Euro. Note: Enter debits before credits. 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. On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 4 Journal entry worksheet Record the change in the fair value of the forward contract on October 15 when the spot rate is $1.53 per Euro. Note: Enter debits before credits. 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 . On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 145678 13> To record a foreign exchange loss on the forward contract to offset the foreign exchange gain on the accounts payable. Note: Enter debits before credits. 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 . On August 15 , the company entered into a two-month forward contract to purchase 551,000 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. (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 Note: Enter aedits perore creaits. 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. On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 13> Record purchase of foreign currency to make payment to German supplier. Note: Enter debits before credits. 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. On August 15 , the company entered into a two-month forward contract to purchase 551,000 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. (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 Record payment made to German supplier on October 15 when the spot rate is $1.53 per Euro. Note: Enter debits before credits. 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. On August 15, the company entered into a two-month forward contract to purchase 551,000 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. (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 A Journal entry worksheet Note: Enter debits before credits. Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 Note: Enter debits berore credits. Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 Journal entry worksheet Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 Note: tnter debits Derore credits. Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 56789> Record the gain or loss on the forward contract. Note: Enter debits before credits. Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 Journal entry worksheet Record purchase of foreign currency for settling the accounts payable. Note: Enter debits before credits. Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 rote: ciler ueuis verure cienis. Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 A Journal entry worksheet Complete this question by entering your 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 entered into a two-month forward contract to purchase 551,000 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 effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, 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 Complete this question by entering your 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 551,000 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 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, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 23456789> Record the gain or loss on the foreign currency euro call option with a premium of $0.050 per Euro at a strike price of $1.45 and an exercise date of October 15. Note: Enter debits before credits. Complete this question by entering your 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 551,000 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 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, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 56789 Record the gain or loss on the foreign currency euro call option with a premium of $0.060. Note: Enter debits before credits. Complete this question by entering your 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 551,000 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 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, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Show less A Journal entry worksheet 56789> Record the transfer of exchange gain or loss to firm commitment. Note: Enter debits before credits. Complete this question by entering your 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 551,000 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 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, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Show less a Journal entry worksheet Record purchase of foreign currency for settling the accounts payable. Note: Enter debits before credits. Complete this question by entering your 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 551,000 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 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, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 89 Record purchase of inventory from the German supplier. Note: Enter debits before credits. Complete this question by entering your 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 551,000 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 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, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Note: tnter debits berore credits. Complete this question by entering your 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 551,000 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 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, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 2345678 Record the adjustment of cost of goods sold to the extent of firm commitment. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entry worksheet 23456789> Record the gain or loss on the foreign currency euro call option with a premium of $0.050 per Euro at a strike price of $1.45 and an exercise date of October 15. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entry worksheet 34579> Record the gain or loss on the foreign currency euro call option with a premium of $0.060. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entry worksheet 56789 Record the transfer of gain or loss to the cost of goods sold. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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 Journal entry worksheet 6789 Record the entry for changes in the fair value of Euro call option. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entry worksheet Record the transfer of gain or loss to the cost of goods sold. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entry worksheet 89> Record purchase of foreign currency for settling the accounts payable. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entry worksheet Note: Enter debits berore credits. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entrv worksheet Ivule. LrleI ueris veivit cienis. Complete this question by entering your answers in the tabs below. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a twomonth call option on 551,000 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.) Journal entry worksheet Record the adjustment of cost of goods sold to the extent of Other Comprehensive Income. Note: Enter debits before credits