On December 15, 2014,ElectronixCompany purchassed inventory froma foreign supplierfor 3,000,000 foreign currency units (fcu's). Payment to be madeon February 13, 2015. On December 15, 2014, to hedge the transaction, Electronix signed a forward contract to purchase3,000,000 fcu's in 60 days. Ignore time value of money.The forward contract will be settled NET. The related exchange rates are shown below:

Spot RateForward Rate to 2/13/15

December 15, 2014$.012 = 1 fcu$.012 = 1 fcu

December 31, 2014$.015 = 1 fcu$.016 = 1 fcu

February 13, 2015$.017 = 1 fcu$.017 = 1 fcu

Required

Record the appropriateentries on the above dates if the hedge is acash flow hedge.

Round to the nearest whole dollar.

Answer rating: 100% (QA)

Here are the accounting entries for Electronix Company assuming the hedge is a cash flow hedge Decem... View the full answer