Question: Problem II: (Foreign Currency Commitment) Cedar Corporation entered into a contract on November 1, 2019 to sell two machines to International Company for 1,000,000 foreign

Problem II: (Foreign Currency Commitment) Cedar Corporation entered into a contract on November 1, 2019 to sell two machines to International Company for 1,000,000 foreign currency units (FCU). The machines were to be delivered and the amount collected on March 1, 2020. In order to hedge its commitment, Cedar entered, on November 1, 2019, into a forward contract to sell 1,000,000 FCU on March 1, 2020. The forward contract met all conditions for hedging a foreign currency commitment. Selected exchange rates for FCU at various dates were as follows: Forward Rate Date Spot Rate (Delivery on 3/1/2020) 11/1/2019 $0.662 $0.661 12/31/2019 $0.686 $0.687 3/1/2020 $0.675 Instructions: Prepare all journal entries relative to the above on the following dates: 1. November 1, 2019. 2. Year-end adjustments on December 31, 2019. 3. March 1, 2020. (Include all adjustments related to the forward contract)

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