08/01/X1 SR = $.0065 FR = $.0073 No entry NO HEDGE BUS 42200 - CHAPTER 11...

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08/01/X1 SR = $.0065 FR = $.0073 No entry NO HEDGE BUS 42200 - CHAPTER 11 ENTRIES FOR EXPOSED NET LIABILITY POSITION HEDGE EXPOSED NET LIABILITY POSITION No entry HEDGE FOREIGN CURRENCY COMMITMENT (designated as fair value hedge) Foreign Currency Receivable from Broker 14600 Dollars Payable to Broker 14600 10/1/X1 SR = $.0070 FR = $.0075 Inventory 14000 Inventory Accounts Payable 14000 Accounts Payable Foreign Currency Receivable from Broker 400 Foreign Currency Transaction Gain 400 Foreign Currency Transaction Loss 400 Firm Commitment 400 14000 Inventory 14000 Firm Commitment Accounts Payable 13600 400 14000 Foreign Currency Receivable from Broker 15000 Dollars Payable to Broker 15000 12/31/X1 Foreign Currency Transaction Loss 2000 SR = $.0080 Accounts Payable 2000 Foreign Currency Transaction Loss Accounts Payable 2000 2000 Foreign Currency Transaction Loss Accounts Payable 2000 2000 CR = $.0080 FR = $.0077 Foreign Currency Receivable from Broker Foreign Currency Transaction Gain 400 400 Foreign Currency Receivable from Broker Foreign Currency Transaction Gain 400 400 04/01/X2 Accounts Payable 800 Accounts Payable 800 Accounts Payable 800 SR = $.0076 Foreign Currency Transaction Gain 800 Foreign Currency Transaction Gain 800 Foreign Currency Transaction Gain 800 FR = $.0076 Foreign Currency Transaction Loss 200 Foreign Currency Transaction Loss 200 Foreign Currency Receivable from Broker 200 Foreign Currency Receivable from Broker 200 Dollars Payable to Transaction Broker 15000 Dollars Payable to Transaction Broker 14600 Cash 15000 Cash 14600 Foreign Currency Units (Yen) Cash 15200 Foreign Currency Units (Yen) 15200 Foreign Currency Units (Yen) 15200 15200 Foreign Currency Receivable from Broker 15200 Foreign Currency Receivable from Broker 15200 Accounts Payable 15200 Accounts Payable 15200 Accounts Payable 15200 Foreign Currency Units (Yen) 15200 Foreign Currency Units (Yen) 15200 Foreign Currency Units (Yen) 15200 08/01/X1 SR = $.0065 FR = $.0073 No entry NO HEDGE BUS 42200 - CHAPTER 11 ENTRIES FOR EXPOSED NET LIABILITY POSITION HEDGE EXPOSED NET LIABILITY POSITION No entry HEDGE FOREIGN CURRENCY COMMITMENT (designated as fair value hedge) Foreign Currency Receivable from Broker 14600 Dollars Payable to Broker 14600 10/1/X1 SR = $.0070 FR = $.0075 Inventory 14000 Inventory Accounts Payable 14000 Accounts Payable Foreign Currency Receivable from Broker 400 Foreign Currency Transaction Gain 400 Foreign Currency Transaction Loss 400 Firm Commitment 400 14000 Inventory 14000 Firm Commitment Accounts Payable 13600 400 14000 Foreign Currency Receivable from Broker 15000 Dollars Payable to Broker 15000 12/31/X1 Foreign Currency Transaction Loss 2000 SR = $.0080 Accounts Payable 2000 Foreign Currency Transaction Loss Accounts Payable 2000 2000 Foreign Currency Transaction Loss Accounts Payable 2000 2000 CR = $.0080 FR = $.0077 Foreign Currency Receivable from Broker Foreign Currency Transaction Gain 400 400 Foreign Currency Receivable from Broker Foreign Currency Transaction Gain 400 400 04/01/X2 Accounts Payable 800 Accounts Payable 800 Accounts Payable 800 SR = $.0076 Foreign Currency Transaction Gain 800 Foreign Currency Transaction Gain 800 Foreign Currency Transaction Gain 800 FR = $.0076 Foreign Currency Transaction Loss 200 Foreign Currency Transaction Loss 200 Foreign Currency Receivable from Broker 200 Foreign Currency Receivable from Broker 200 Dollars Payable to Transaction Broker 15000 Dollars Payable to Transaction Broker 14600 Cash 15000 Cash 14600 Foreign Currency Units (Yen) Cash 15200 Foreign Currency Units (Yen) 15200 Foreign Currency Units (Yen) 15200 15200 Foreign Currency Receivable from Broker 15200 Foreign Currency Receivable from Broker 15200 Accounts Payable 15200 Accounts Payable 15200 Accounts Payable 15200 Foreign Currency Units (Yen) 15200 Foreign Currency Units (Yen) 15200 Foreign Currency Units (Yen) 15200