On November $1,2023,$ Cheng Company $($a U$.$S$.-$based company$)$ forecasts the purchase of goods from a foreign supplier for

$170,000$ yuan. Cheng expects to receive the goods on April $30,2024,$ and make immediate payment. On November $1,2023,$

Cheng enters into a six$-$month forward contract to buy $170,000$ yuan. The company properly designates the forward contract

as a cash flow hedge of a forecasted foreign currency transaction. Forward points are excluded in assessing hedge

effectiveness and are amortized to net income using a straight$-$line method on a monthly basis over the life of the contract.

The following U$.$S$.$ dollar$-$Yuan exchange rates apply:

As expected, Cheng receives goods from the foreign supplier on April $30,2024,$ and pays $170,000$ yuan immediately. Cheng

sells the imported goods in the local market in May $2024.$

Required:

a$.$ Prepare all journal entries, including December $31$ adjusting entries, to record the foreign currency forward contract and

import purchase.

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

c$.$ What is the impact on net income in $2024?$