N CPA Portal ← ← C WP WPUNJ WPConnect Portal LTI Launch × M Question 6 - Ch.9 Homework ✓ + Help ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect%... Q Ch.9 Homework Assignment i Saved 6 10 points Skipped eBook Hint Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2023, with payment of 22,000 dinars to be received on March 1, 2024. Icebreaker enters into a forward contract on December 1, 2023, to sell 22,000 dinars on March 1, 2024. 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 monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Spot Rate Forward Rate (to March 1, 2024) Date December 1, 2023 December 31, 2023 March 1, 2024 $ 4.00 4.10 4.25 $ 4.075 4.200 N/A Icebreaker must close its books and prepare financial statements at December 31. Required: a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. a-2. What is the impact on 2023 net income? a-3. What is the impact on 2024 net income? Print References a-4. What is the impact on net income over the two accounting periods? b-1. 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. b-2. What is the impact on 2023 net income? b-3. What is the impact on 2024 net income? b-4. What is the impact on net income over the two accounting periods? Mc Graw Hill Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 Show less▲ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. Note: 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 6 7 8 12 Record the sales and foreign currency account receivable. < Prev 6 of 10 Next > ............. EJ Save & Exit Submit M > ...
N CPA Portal ← ← C WP WPUNJ WPConnect Portal LTI Launch × M Question 6 - Ch.9 Homework ✓ + Help ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect%... Q Ch.9 Homework Assignment i Saved 6 10 points Skipped eBook Hint Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2023, with payment of 22,000 dinars to be received on March 1, 2024. Icebreaker enters into a forward contract on December 1, 2023, to sell 22,000 dinars on March 1, 2024. 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 monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Spot Rate Forward Rate (to March 1, 2024) Date December 1, 2023 December 31, 2023 March 1, 2024 $ 4.00 4.10 4.25 $ 4.075 4.200 N/A Icebreaker must close its books and prepare financial statements at December 31. Required: a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. a-2. What is the impact on 2023 net income? a-3. What is the impact on 2024 net income? Print References a-4. What is the impact on net income over the two accounting periods? b-1. 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. b-2. What is the impact on 2023 net income? b-3. What is the impact on 2024 net income? b-4. What is the impact on net income over the two accounting periods? Mc Graw Hill Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 Show less▲ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. Note: 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 6 7 8 12 Record the sales and foreign currency account receivable. < Prev 6 of 10 Next > ............. EJ Save & Exit Submit M > ...
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 3.4C
Related questions
Question
Transcribed Image Text:N CPA Portal
←
←
C
WP WPUNJ WPConnect Portal
LTI Launch
×
M Question 6 - Ch.9 Homework ✓
+
Help
ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fconnect.mheducation.com%252Fconnect%... Q
Ch.9 Homework Assignment i
Saved
6
10
points
Skipped
eBook
Hint
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2023, with payment of 22,000 dinars to
be received on March 1, 2024. Icebreaker enters into a forward contract on December 1, 2023, to sell 22,000 dinars on March 1, 2024.
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 monthly basis. Relevant exchange rates for the dinar on various dates are as follows:
Spot Rate
Forward Rate (to
March 1, 2024)
Date
December 1, 2023
December 31, 2023
March 1, 2024
$ 4.00
4.10
4.25
$ 4.075
4.200
N/A
Icebreaker must close its books and prepare financial statements at December 31.
Required:
a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal
entries for the sale and foreign currency forward contract in U.S. dollars.
a-2. What is the impact on 2023 net income?
a-3. What is the impact on 2024 net income?
Print
References
a-4. What is the impact on net income over the two accounting periods?
b-1. 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.
b-2. What is the impact on 2023 net income?
b-3. What is the impact on 2024 net income?
b-4. What is the impact on net income over the two accounting periods?
Mc
Graw
Hill
Complete this question by entering your answers in the tabs below.
Req A1
Req A2 to A4
Req B1
Req B2 to B4
Show less▲
Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries
for the sale and foreign currency forward contract in U.S. dollars.
Note: 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
6 7
8
12
Record the sales and foreign currency account receivable.
< Prev
6 of 10
Next >
.............
EJ
Save & Exit
Submit
M
>
...
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you