Icebreaker Company $($a U$.$S$.-$based company$)$ purchases materials from a foreign supplier on December $1,2023,$ with payment of $34,000$ 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 $34,000$ dinars on March $1,2024.$ Relevant exchange rates for the dinar on various dates are as follows:

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$\backslash$table$[[$Date$,$Spot Rate,$\backslash$table$[[$Forward Rate $($to$],[$March $1,2024)]]],[$December $1,2023,$$$5\mathrm{.}20,$$$5\mathrm{.}275],[$December $31,2023,5\mathrm{.}30,5\mathrm{.}400],[$March $1,2024,5\mathrm{.}45,$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?

Complete this question by entering your answers in the tabs below.

Req A$1$

Req A$2$ to A$4$

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.

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.

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$\backslash$table$[[,$No$,$Date,General Journal,Debit,Credit$],[>,1,12/01/2023,$Accounts Receivable $($dinars$),176,800,],[,,$Sales,,$176,800],[$r$,2,12/01/2023,$No Journal Entry Required,,$],[\backslash$gamma $,3,12/31/2023,$Accounts Payable $($dinars$),,],[,,$Foreign Exchange Gain or Loss,,$],[\backslash$gamma $,4,12/31/2023,$Other Comprehensive Income,,$],[,,$Forward Contract,,$],[>,5,12/31/2023,$Foreign Exchange Gain or Loss,,$],[,,$Other Comprehensive Income,,$],[$i$,6,12/31/2023,$Other Comprehensive Income,,$],[,,$Foreign Exchange Gain or Loss,,$],[1,7,03/01/2024,$Accounts Receivable $($dinars$),,],[,,$Foreign Exchange Gain or Loss,,$],[$;$,8,03/01/2024,$Other Comprehensive Income,,$],[,,$Forward Contract,,$],[\backslash$gamma $,9,03/01/2024,$Foreign Exchange Gain or Loss,,$],[,,$Other Comprehensive Income,,$],[1,10,03/01/2024,$Other Comprehensive Income,,$],[,,$Foreign Exchange Gain or Loss,,$],[2,11,03/01/2024,$Foreign Currency $($dinars$),,],[,,$Accounts Receivable $($dinars$),,],[$in$,$nnintinnt,n$-.$t$,,]]$