Exercise A$-9($Algo$)$ Derivatives; foreign currency; cash flow hedge $[$LOA$-4]$ Cleveland Company is a U$.$S$.$ firm with a U$.$S$.$ dollar functional currency that manufactures copper$-$related products. It forecasts that it will sell $5,000$ feet of copper tubing to one of its largest customers at a price of $\backslash (28,000,000\backslash ).$ Although this sale has not been firmly committed, Cleveland expects that the sale will occur in six months on June $30,2024.$ Thus, Cleveland is exposed to changes in foreign currency exchange rates. To reduce this exposure, Cleveland enters into a six$-$month foreign currency exchange forward contract with a third$-$party dealer on January $1,2024,$ to deliver $\backslash (\backslash )$ and receive US$\backslash$$$.$ The foreign exchange contract has the following terms: Yen $\backslash (\backslash$div $\backslash )$ US$\backslash$$ Exchange rates: Cleveland obtains the fair values of the forward exchange contract from the third$-$party dealer. Required: $1.$ Calculate the net settlement on June $30,2024.2.$ Prepare the journal entries for the period January $1$ to June $30,2024,$ to record the forward contract, necessary adjustments for changes in fair value, and settlement. Complete this question by entering your answers in the tabs below. Required $1$ Calculate the net settlement on June $30,2024.$ Note: Round your intermediate and final answer to the nearest whole dollar. Prepare the journal entries for the period January $1$ to June $30,2024,$ to record the forward contract, necessary adjustments for changes in fair value, and settlement.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.

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Journal entry worksheet

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To record the change in the fair value of the derivative.

Note: Enter debits before credits.