Icebreaker Company (a U.S-based company) sells parts to a foreign customer on December 1. 2020, with payment of 23,000 dinars to be received on March 1, 2021 . Icebreaker enters into a forward contract on December 1, 2020, to sell 23,000 dinars on March 1, 2021 The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthiy basis. Relevant exchange rates for the dinar on various dates are as follows: Kebreaker must close its books and prepare financial statements at December 31 . a.1. Assuming that icebreaker designates the forward contract as a cash flow hedge of a foreign currency recelvable, prepare joumal entries for the sale and foreign currency forward contract in US dollars: a.2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? a.4. What is the impact on net income over the two accounting periods? b-1. Assuming that lcebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare joumal entries for the sale and foteign currency forward contractin US dollars. b. 2. What is the impact on 2020 net income? b-3. What is the impact on 2021 net income? b-4. What is the impact on net income over the two accounting periods? Complete this question by entering your answers in the tabs below. Assuming that iccbreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare joumal entries for the sale and foreign currency forward contract in U.S. dollars. (if no entry is required for a trancy fection event, select "No journal entry required" in the first account field. Do not round intermediate calculstions.) issuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries or the sale and foreign currency forward contract in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fieid. Do not round intermediate calculations.) Journal entry worksheet b2. What is the impact on 2020 net income? b-3. What is the impact on 2021 net income? b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. Negative amounts should be entered with a minus sign.) Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract 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.) Journal entry worksheet Show lessa 234567812 Record the sales and foreign currency account receivable. Niotes Enker debits before crecits. Icebreaker Company (a U.S-based company) sells parts to a foreign customer on December 1. 2020, with payment of 23,000 dinars to be received on March 1, 2021 . Icebreaker enters into a forward contract on December 1, 2020, to sell 23,000 dinars on March 1, 2021 The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthiy basis. Relevant exchange rates for the dinar on various dates are as follows: Kebreaker must close its books and prepare financial statements at December 31 . a.1. Assuming that icebreaker designates the forward contract as a cash flow hedge of a foreign currency recelvable, prepare joumal entries for the sale and foreign currency forward contract in US dollars: a.2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? a.4. What is the impact on net income over the two accounting periods? b-1. Assuming that lcebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare joumal entries for the sale and foteign currency forward contractin US dollars. b. 2. What is the impact on 2020 net income? b-3. What is the impact on 2021 net income? b-4. What is the impact on net income over the two accounting periods? Complete this question by entering your answers in the tabs below. Assuming that iccbreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare joumal entries for the sale and foreign currency forward contract in U.S. dollars. (if no entry is required for a trancy fection event, select "No journal entry required" in the first account field. Do not round intermediate calculstions.) issuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries or the sale and foreign currency forward contract in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fieid. Do not round intermediate calculations.) Journal entry worksheet b2. What is the impact on 2020 net income? b-3. What is the impact on 2021 net income? b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. Negative amounts should be entered with a minus sign.) Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract 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.) Journal entry worksheet Show lessa 234567812 Record the sales and foreign currency account receivable. Niotes Enker debits before crecits
