Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2023, with...

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Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2023, with payment of 18,000 dinars to be received on March 1, 2024. Icebreaker enters into a forward contract on December 1, 2023, to sell 18,000 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: Date December 1, 2023 December 31, 2023 March 1, 2024 Forward Rate (to Spot Rate March 1, 2024) $ 3.60 $ 3.675 3.70 3.85 3.800 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? 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 the impact on 2024 net income? b-4. What is the impact on net income over the two accounting periods? Req A1 Req A2 to A4 Req B1 Req B2 to B4 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. Note: Enter debits before credits. Date 12/01/2023 General Journal Debit Credit View general journal Record entry Clear entry Show less Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 a-2. What is the impact on 2023 net income? a-3. What is the impact on 2024 net income? a-4. What is the impact on net income over the two accounting periods? Note: For all requirements, do not round intermediate calculations. Negative amounts should be entered with a minus sign. Show less a-2. Impact on 2023 net income a-3. Impact on 2024 net income a-4. Impact on net income over 2023 and 2024 < Req A1 Req B1 > Req A1 Req A2 to A4 Req B1 Req B2 to B4 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. 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. Note: Enter debits before credits. Date 12/01/2023 General Journal Debit Credit Record entry Clear entry View general journal Show less Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 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? Note: For all requirements, do not round intermediate calculations. Negative amounts should be entered with a minus sign. Show less b-2. Impact on 2023 net income b-3. Impact on 2024 net income b-4. Impact on net income over 2023 and 2024 < Req B1 Req B2 to B4 > Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2023, with payment of 18,000 dinars to be received on March 1, 2024. Icebreaker enters into a forward contract on December 1, 2023, to sell 18,000 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: Date December 1, 2023 December 31, 2023 March 1, 2024 Forward Rate (to Spot Rate March 1, 2024) $ 3.60 $ 3.675 3.70 3.85 3.800 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? 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 the impact on 2024 net income? b-4. What is the impact on net income over the two accounting periods? Req A1 Req A2 to A4 Req B1 Req B2 to B4 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. Note: Enter debits before credits. Date 12/01/2023 General Journal Debit Credit View general journal Record entry Clear entry Show less Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 a-2. What is the impact on 2023 net income? a-3. What is the impact on 2024 net income? a-4. What is the impact on net income over the two accounting periods? Note: For all requirements, do not round intermediate calculations. Negative amounts should be entered with a minus sign. Show less a-2. Impact on 2023 net income a-3. Impact on 2024 net income a-4. Impact on net income over 2023 and 2024 < Req A1 Req B1 > Req A1 Req A2 to A4 Req B1 Req B2 to B4 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. 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. Note: Enter debits before credits. Date 12/01/2023 General Journal Debit Credit Record entry Clear entry View general journal Show less Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 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? Note: For all requirements, do not round intermediate calculations. Negative amounts should be entered with a minus sign. Show less b-2. Impact on 2023 net income b-3. Impact on 2024 net income b-4. Impact on net income over 2023 and 2024 < Req B1 Req B2 to B4 >