Icebreaker Company $($a U$.$S$.-$based company$)$ purchases materlals from a forelgn supplier on December $1,2020,$ wth payment of $16,000$ dinars to be made on March $1,2021.$ The materlals are consumed Immedlately and recognlzed as cost of goods sold at the date of purchase. On December $1,2020,$ Icebreaker enters into a forward contract to purchase $16,000$ dinars on March $1,2021.$

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

Date

Decenber $1,2920$

December $31,2020$

March $1,2021$

Spot Rate

$$2\mathrm{.}79$

$2\mathrm{.}89$

$2.95$

Forward Rate

$($to March $1,2021)$

$$2\mathrm{.}775$

$2\mathrm{.}909$

N$/$A

a$-1.$ Assuming that lcebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare joumal entrles for the import purchase and forelgn currency forward contract in U$.$S$.$ dollars.

a$-2$ What is the impact on $2020$ net income?

a$-3.$ What is the Impact on $2021$ net income?

a$-4.$ What is the Impact on net Income over the two accounting perlods?

b$-1.$ Assuming that Icebreaker designates the forward contract as a falr value hedge of a forelgn currency payable, prepare journal entries for the import purchase and forelgn currency forward contract in U$.$S$.$ dollars.

b$-2.$ What is the impact on net Income in $2020$ and in $2021?$

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

Answer is not complete.

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

Req A$1$

Req A$2$ to A$4$

Req B$1$

Req B$2$ to B$3$

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. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$

Show less $4$

$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,12/01/2020,$Accounts receivable $($dinars$),$x$,43,200,],[,$Sales,x$,,43,2000],[2,12/01/2020,$No journal entry required,$0,,],[3,12/31/2020,$Accounts receivable $($dinars$),$x$,1,6000,],[,$Foreign exchange gain or loss,x$,,1,8000],[4,12/31/2020,$Foreign exchange gain or loss,x$,2,0000,],[,$Forward contract,x$,,2,0000],[5,12/31/2020,$No journal entry required,$0,,],[6,12/31/2020,$Other comprehensive income,x$,8000,],[,$Foreign exchange gain or loss,x$,,8000],[7,03/01/2021,$Accounts receivable $($dinars$),$x$,2,400,],[,$Foreign exchange gain or loss,x$,,2,4000],[8,03/01/2021,$No journal entry required,x$,,],[9,03/01/2021,$Foreign exchange gain or loss,x$,800$x$,],[,$Forward contract,x$,,800$ox$],[10,03/01/2021,$Foreign exchange gain or loss,x$,8000,],[,$Accumulated other comprehensive income,x$,,8000],[11,03/01/2021,$Foreign currency $($dinars$),0,47,2000,],[,$Acoounts receivable $($dinars$),$x$,,47,200$x$],[12,03/01/2021,$Cash,x$,44,400\backslash$times $,],[,$Forward contract,x$,2,800$x$,],[,$Foreign currency $($dinars$),$x$,,47,200$x$]]$