Icebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2023,$ with payment of $27,000$ dinars to be received on March $1,2024.$ Icebreaker enters into a forward contract on December $1,2023,$ to sell $27,000$ dinars on March $1,2024.$ The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight$-$line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:

Date Spot Rate Forward Rate $($to March $1,2024)$

December $1,2023$ $ $4\mathrm{.}50$ $ $4\mathrm{.}575$

December $31,20234\mathrm{.}604\mathrm{.}700$

March $1,20244\mathrm{.}75$ N$/$A

Icebreaker must close its books and prepare financial statements at December $31.$Icebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2023,$ with payment of $27,000$ dinars to

be received on March $1,2024.$ Icebreaker enters into a forward contract on December $1,2023,$ to sell $27,000$ dinars on March $1,2024.$

The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a

straight$-$line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:

Icebreaker must close its books and prepare financial statements at December $31.$

Required:

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

entries for the sale 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 lcebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal

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

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

b$-3.$ What is the impact on $2024$ net income?

b$-4.$ What is the impact on net income over the two accounting periods?

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

Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries

for the sale 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.

Journal entry worksheetIcebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2023,$ with payment of $27,000$ dinars to

be received on March $1,2024.$ Icebreaker enters into a forward contract on December $1,2023,$ to sell $27,000$ dinars on March $1,2024.$

The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a

straight$-$line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:

Icebreaker must close its books and prepare financial statements at December $31.$

Required:

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

entries for the sale 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 lcebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal

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

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

b$-3.$ What is the impact on $2024$ net income?

b$-4.$ What is the impact on net income over the two accounting periods?

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

Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries

for the sale 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.

Journal entry worksheetComplete this question by entering your answers in the tabs below.

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.Icebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2023,$ with payment of $27,000$ dinars to

be received on March $1,2024.$ Icebreaker enters into a forward contract on December $1,2023,$ to sell $27,000$ dinars on March $1,2024.$

The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized