$25$points eBookReferences Check my workCheck My Work button is now enabled Item $1$ Icebreaker Company $($a U$.$S$.-$based company$)$ purchases materials from a foreign supplier on December $1,2023,$ with payment of $17,000$ dinars to be made on March $1,2024.$ The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December $1,2023,$ Icebreaker enters into a forward contract to purchase $17,000$ dinars on March $1,2024.$ Relevant exchange rates for the dinar on various dates are as follows: DateSpot RateForward Rate $($to March $1,2024)$December $1,2023$$ $3\mathrm{.}50$$ $3\mathrm{.}575$December $31,20233\mathrm{.}603\mathrm{.}700$March $1,20243\mathrm{.}75$N$/$A Required: a$-1.$ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U$.$S$.$ dollars.$$ a$-2.$ What is the impact on $2023$ net income? a$-3.$ What is the impact on $2024$ net income? a$-4.$ What is the impact on net income over the two accounting periods? b$-1.$ Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U$.$S$.$ dollars.$$ b$-2.$ What is the impact on net income in $2023$ and in $2024?$ b$-3.$ What is the impact on net income over the two accounting periods?

Icebreaker Company $($a U$.$S$.-$based company$)$ purchases materials from a foreign supplier on December $1,2023,$ with payment of

$17,000$ dinars to be made on March $1,2024.$ The materials are consumed immediately and recognized as cost of goods sold at the

date of purchase. On December $1,2023,$ Icebreaker enters into a forward contract to purchase $17,000$ dinars on March $1,2024.$

Relevant exchange rates for the dinar on various dates are as follows:

Required:

a$-1.$ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal

entries for the import purchase 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 payable, prepare journal

entries for the import purchase and foreign currency forward contract in U$.$S$.$ dollars.

for B$1$ here is what they are asking for JE

$1.$Record the purchase of materials.

$2.$Record the forward contract.

$3.$Record the entry to revalue the foreign currency account payable.

$4.$Record the foreign exchange gain or loss on the forward contract.

$5.$Record the foreign exchange gain or loss on the forward contract.

$6.$Record the entry to adjust the net amount recognized as foreign exchange gain or loss to reflect the amortization of the forward contract premium or discount.

$7.$Record the entry to revalue the foreign currency account receivable.

$8.$Record the foreign exchange gain or loss on the forward contract.

$9.$Record the settlement of the forward contract.

$10.$Record the entry to adjust the net amount recognized as foreign exchange gain or loss to reflect the amortization of the forward contract premium or discount.

$11.$Record the settlement of the forward contract.

$12.$Record the payment of dinars to the foreign supplier.

b$-2.$ What is the impact on net income in $2023$ and in $2024?$

b$-3.$ What is the impact on net income over the two accounting periods?

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 $4$ b$-2.$ What is the impact on net income in $2023$ and in $2024?$

$\backslash (\backslash$mathrm$\{$b$\}-3\backslash ).$ 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.