Refer to P10.6. Assume that Alpha Corporation designates the forward contract as a cash flow hedge of the foreign exchange risk related to the transaction. Prepare journal entries for the period 1 December 20x1 to 30 March 20x2. (To simplify the computations, ignore discounting of the forward contract.)

Data from P10.6

The following information pertains to Alpha Corporation whose functional currency is the dollar.

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Date 1 December 20x1 31 December 20x1 1 February 20x2 30 March 20x2 Event A highly probable sales transaction of FC 10,000,000 was forecasted to arise from successful negotiations with a customer. Alpha Corporation entered into a forward exchange contract to deliver (sell) FC 10,000,000 on 30 March 20x2 to hedge the foreign exchange risk of the forecasted sales transaction. Alpha Corporation's financial year-end. Signed a non-cancellable contract with the customer for an order of FC 10,000,000 with an agreed delivery and settlement date of 30 March 20x2. Delivery made to the customer. Net settlement of forward contract.