on a excel sheet On December $1,2022,$ Mojito Co$.$ sold inventory to a customer in a foreign country.

Mojito agreed to accept $150,000$ local currency units $($lcu$)$ in full payment for this

inventory. Payment was to be made on February $1,2023.$ On December $1,2022,$

Mojito purchases an option at a premium of $$\mathrm{.}025$ to sell $150,000$LCU at a strike

price of $$\mathrm{.}32$ on February $1,2023.$ The spot rates and option premiums on various

dates were as follows:

Required:

Assume that this hedge is designated as a cash flow hedge. Prepare the journal

entries relating to the transaction and the option. On December $1,2022,$ Mojito Co$.$ sold inventory to a customer in a foreign country. Mojito agreed to accept $150,000$ local currency units $($lcu$)$ in full payment for this inventory. Payment was to be made on February $1,2023.$ On December $1,2022,$ Mojito purchases an option at a premium of $$\mathrm{.}025$ to sell $150,000$ LCU at a strike price of $$\mathrm{.}32$ on February $1,2023.$ The spot rates and option premiums on various dates were as follows:

Date Rate Description Exchange Rate

$12-1-22$ Spot rate $$\mathrm{.}32=1$ lcu

Option premium $$\mathrm{.}025$

$12-31-22$ Spot rate $$\mathrm{.}29=1$ lcu

Option premium $$\mathrm{.}045$

$2-1-23$ Spot rate $$\mathrm{.}27=1$ lcu

Required:

Assume that this hedge is designated as a cash flow hedge. Prepare the journal entries relating to the transaction and the option.