Question: I need help only with few journal entires: 1. Record entry to adjust the carrying value of the forward contract to its current fair value

I need help only with few journal entires: 1. Record entry

I need help only with few journal entires:

1. Record entry to adjust the carrying value of the forward contract to its current fair value on 12/31/2017

2. Record the change in the fair value of the forward contract on 12/31/2017

3. Record entry to adjust the carrying value of the forward contract to its current fair value on 04/30/2018

4. Record the change in the fair value of the forward contract on 04/30/2018

5. Record settlement of forward contract on 04/30/2018

show your calculation

On November 1, 2017, Bernard Company (a U.S-based company) sold merchandise to a foreign customer for 300,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 300,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply: Date November 1, 2017 December 31, 2017 April 30, 2018 Forward Rate (to April 30, 2018) $ 0.40 0.37 Spot Rate $ 0.41 0.39 0.38 N/A Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610. a. Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. On November 1, 2017, Bernard Company (a U.S-based company) sold merchandise to a foreign customer for 300,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 300,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply: Date November 1, 2017 December 31, 2017 April 30, 2018 Forward Rate (to April 30, 2018) $ 0.40 0.37 Spot Rate $ 0.41 0.39 0.38 N/A Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610. a. Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract

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