Q.6
please, help me to fix this ASAP
Retu Date November 1, 2020 December 31, 2020 April 30, 2021 Spot Rate $ 0.22 0.21 0.19 Forward Rate (to April 30, 2021) $0.205 0.190 N/A As expected, Cheng receives goods from the foreign supplier on April 30, 2021, and pays 110,000 yuan immediately. Cheng sells the imported goods in the local market in May 2021. a. Prepare all journal entries, including December 31 adjusting entries, to record the foreign currency forward contract and import purchase. b. What is the impact on net income in 2020? c. What is the impact on net income in 2021? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A Req B and c Prepare all journal entries, including December 31 adjusting entries, to record the foreign currency forward contract and Import purchase. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date 11/01/2020 General Journal 1 Debit No journal entry required Credit 2 12/31/2020 Other comprehensive income DO 2,750 entry required in the first account field.) Return to No Dato General Journal Debit 1 11/01/2020 Credit No journal entry required 2 12/31/2020 Other comprehensive income Forward contract 2.750 . 2.750 o 3 12/31/2020 Cost of goods sold Other comprehensive income 550 550 4 04/30/2021 Forward contract Other comprehensive income 1.100 1.100 5 04/30/2021 Cost of goods sold Other comprehensive Income 1,100 1.100 6 04/30/2021 20,000 Foreign currency (Yuan) Forward contract Cash lol 1.650 22,550 7 04/30/2021 Inventory Foreign currency (Yuan) DO 20,900 20,900 8 04/30/2021 Cost of goods sold Inventory 20,900 20,000 9 04/30/2021 No joumal entry required Return toc December 31, 2020 April 30, 2021 0.21 0.19 0.180 N/A As expected, Cheng receives goods from the foreign supplier on April 30, 2021, and pays 110,000 yuan immediately. Cheng sells the imported goods in the local market in May 2021. a. Prepare all journal entries, including December 31 adjusting entries, to record the foreign currency forward contract and import purchase. b. What is the impact on net income in 2020? c. What is the impact on net income in 2021? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg A Reg B and C b. What is the impact on net income in 2020? c. What is the impact on net income in 2021? (Negative amounts should be entered with a minus sign. Do not round intermediate calculations.) Impact on net income in 2020 impact on net income in 2021 2,200 22,000 C
