Req B1

Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 28.000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 28.000 korunas on March 1. 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31, 2017 March 1, 2018 Spot Rate $ 4.68 4.70 4.85 Forward Rate (to March 1, 2018) $ 4.675 4.800 N/A d Brandlin's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31. 6-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars. a-2. What is the impact on 2017 net income? 4-3. What is the impact on 2018 net income? 2-4. What is the impact on net income over the two accounting periods? b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars. b-2 What is the impact on 2017 net income? b-3. What is the impact on 2018 net income? 6-4. What is the impact on net income over the two accounting periods? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to A4 Reg B1 Req B2 to 84 Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Show less A No Date General Journal Debit Credit 1 12/01/2017 0 100,800.00 Accounts receivable (K) Sales 100,800.00 X 2 12/01/2017 No journal entry required 3 12/31/2017 2,800.00 Accounts receivable (K) Foreign exchange gain 2.800.00 Reg A1 Reg A2 to A4 Reg B1 Reg B2 to B4 a-2. What is the impact on 2017 net income? a-3. What is the impact on 2018 net income? 2-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.) Impact on 2017 net income 2. Impact on 2018 net income s 101.500 S 1,400 S 102.900 3. Impact on net income over 2017 and 2018 4. No Date General Journal Debit Credit 1 12/01/2017 128,800.00 Accounts receivable (K) Sales 128,800.00 2 12/01/2017 No journal entry required 3 12/31/2017 2,800.00 Accounts receivable (K) Foreign exchange gain 2,800.00 4 12/31/2017 X 3,431.05 Loss on forward contract Forward contract 3,431.05 12/31 4,200.00 X Accounts receivable (K) Foreign exchange gain x x 4,200.00 X 6 12/31/2017 No journal entry required > 7 03/01/2018 No journal entry required x x 8 03/01/2018 X 4,200.00 Accounts receivable (K) Foreign exchange gain 4,200.00 9 03/01/2018 1,488.95 Loss on forward contract Forward contract 00 1,488.95 10 03/01/2018 No journal entry required > 11 03/01/2018 135,800.00 Foreign currency (K) Accounts receivable (K) 00 135.800.00 12 03/01/2018 Cash 130,900.00 4,900.00 Forward contract Foreign currency (K) 000 135,800.00 Re At A4 Ren 12 ton Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to 44 Reg B1 Reg B2 to B4 b-2. What is the impact on 2017 net income? b-3. What is the impact on 2018 net income? b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Show less Impact on 2017 net income 2. $128.160.00 Impact on 2018 net income $ 2,731.00 Impact on net income over 2017 and 2018 $ 130,900.00 4. Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 28.000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 28.000 korunas on March 1. 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31, 2017 March 1, 2018 Spot Rate $ 4.68 4.70 4.85 Forward Rate (to March 1, 2018) $ 4.675 4.800 N/A d Brandlin's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31. 6-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars. a-2. What is the impact on 2017 net income? 4-3. What is the impact on 2018 net income? 2-4. What is the impact on net income over the two accounting periods? b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars. b-2 What is the impact on 2017 net income? b-3. What is the impact on 2018 net income? 6-4. What is the impact on net income over the two accounting periods? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to A4 Reg B1 Req B2 to 84 Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Show less A No Date General Journal Debit Credit 1 12/01/2017 0 100,800.00 Accounts receivable (K) Sales 100,800.00 X 2 12/01/2017 No journal entry required 3 12/31/2017 2,800.00 Accounts receivable (K) Foreign exchange gain 2.800.00 Reg A1 Reg A2 to A4 Reg B1 Reg B2 to B4 a-2. What is the impact on 2017 net income? a-3. What is the impact on 2018 net income? 2-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.) Impact on 2017 net income 2. Impact on 2018 net income s 101.500 S 1,400 S 102.900 3. Impact on net income over 2017 and 2018 4. No Date General Journal Debit Credit 1 12/01/2017 128,800.00 Accounts receivable (K) Sales 128,800.00 2 12/01/2017 No journal entry required 3 12/31/2017 2,800.00 Accounts receivable (K) Foreign exchange gain 2,800.00 4 12/31/2017 X 3,431.05 Loss on forward contract Forward contract 3,431.05 12/31 4,200.00 X Accounts receivable (K) Foreign exchange gain x x 4,200.00 X 6 12/31/2017 No journal entry required > 7 03/01/2018 No journal entry required x x 8 03/01/2018 X 4,200.00 Accounts receivable (K) Foreign exchange gain 4,200.00 9 03/01/2018 1,488.95 Loss on forward contract Forward contract 00 1,488.95 10 03/01/2018 No journal entry required > 11 03/01/2018 135,800.00 Foreign currency (K) Accounts receivable (K) 00 135.800.00 12 03/01/2018 Cash 130,900.00 4,900.00 Forward contract Foreign currency (K) 000 135,800.00 Re At A4 Ren 12 ton Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to 44 Reg B1 Reg B2 to B4 b-2. What is the impact on 2017 net income? b-3. What is the impact on 2018 net income? b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Show less Impact on 2017 net income 2. $128.160.00 Impact on 2018 net income $ 2,731.00 Impact on net income over 2017 and 2018 $ 130,900.00 4