Shandra Corporation $($a U$.$S$.-$based company$)$ expects to order goods from a forelgn supplier at a price of $132,000$ pounds, with delvery and payment to be made on June $15.$ On April $15.$ when the spot rate is $\backslash (\backslash$$ $1\mathrm{.}47\backslash )$ per pound, Shandra purchases a two$-$month call option on $132,000$ pounds and designates this option as a cash flow hedge of a forecasted foreign currency transaction. The time value of the optlon is excluded in assessing hedge effectiveness; the change in time value is recognized in net income over the life of the optlon. The option has a strike price of $\backslash (\backslash$$ $1\mathrm{.}47\backslash )$ per pound and costs $\backslash (\backslash$$ $1,320\backslash ).$ The goods are recelved and pald for on June $15.$ Shandra sells the imported goods in the local market Immediately. The spot rate for pounds is $\backslash (\backslash$$ $1\mathrm{.}520\backslash )$ on June $15.$

Required:

a$-1.$ Prepare all Journal entrles for Shandra Corporation related to this transaction and hedge.

a$-2$ What amount should Shandra Corporation report in net Income as cost of goods sold for the quarter ending June $30?$

b$.$ What amount should Shandra Corporation report in net Income as foreign exchange gain or loss for the quarter ending June $30?$

Answer is not complete.

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

Prepare all journal entries for Shandra Corporation related to this transaction and hedge.

Note: If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline No & Date & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$General Journal$\}$ & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & $04/15$ & Foreign Currency Option & $0$ & $1,3200$ & $\backslash \backslash$

$\backslash$hline & & Cash & $0$ & & $1,320$ O $\backslash \backslash$

$\backslash$hline $2$ & $08/15$ & Foreign Currency Option & $0$ & & $\backslash \backslash$

$\backslash$hline & & OCl & $($ & & $\backslash \backslash$

$\backslash$hline $3$ & $06/15$ & Cost of Goods Sold & $0$ & & $\backslash \backslash$

$\backslash$hline & & OCl & $0$ & & $\backslash \backslash$

$\backslash$hline $4$ & $08/15$ & Foreign Currency $($pounds$)$ & $0$ & & $\backslash \backslash$

$\backslash$hline & & Foreign Currency Option & $0$ & & $\backslash \backslash$

$\backslash$hline $5$ & $08/15$ & Inventory & $0$ & & $\backslash \backslash$

$\backslash$hline & & Foreign Currency $($pounds$)$ & $0$ & & $\backslash \backslash$

$\backslash$hline $6$ & $08/15$ & Cost of Goods Sold & $0$ & & $\backslash \backslash$

$\backslash$hline & & Inventory & $($ & & $\backslash \backslash$

$\backslash$hline $7$ & $08/15$ & AOCl & $0$ & & $\backslash \backslash$

$\backslash$hline & & Cost of Goods Sold & $-$ & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Shandra Corporation $($a U$.$S$.-$based company$)$ expects to order goods from a forelgn supplier at a price of $132,000$ pounds, with delvery and payment to be made on June $15.$ On Aprll $15,$ when the spot rate is $\backslash (\backslash$$ $1\mathrm{.}47\backslash )$ per pound, Shandra purchases a two$-$month call option on $132,000$ pounds and designates this optlon as a cash flow hedge of a forecasted forelgn currency transaction. The time value of the optlon is excluded In assessing hedge effectiveness; the change in time value is recognized in net income over the life of the optlon. The option has a strike price of $\backslash (\backslash$$ $1\mathrm{.}47\backslash )$ per pound and costs $\backslash (\backslash$$ $1,320\backslash ).$ The goods are recelved and pald for on June $15.$

Shandra sells the imported goods in the local market Immedately. The spot rate for pounds is $\backslash (\backslash$$ $1\mathrm{.}520\backslash )$ on June $15.$

Required:

a$-1.$ Prepare all journal entrles for Shandra Corporation related to this transaction and hedge.

a$-2$ What amount should Shandra Corporation report in net Income as cost of goods sold for the quarter ending June $30?$

b$.$ What amount should Shandra Corporation report In net Income as forelgn exchange galn or loss for the quarter ending June $30?$

Answer is not complete.

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

What amount should Shandra Corporation report in net income as cost of goods sold for the quarter ending June $30?$

Cost of goods sold

$\backslash$$ $194,040$