Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. (Do not round intermedia calculations. Round your final answers to the nearest whole...

Extracted text: Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. (Do not round intermedia calculations. Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal ent required" in the first account field.) View transaction list 6. Record the premium or discount expense. 12 7 Record the entry for changes in the exchange rate. 8 Record entry to adjust the carrying value of the forward contract to its current fair value. 9. Record the change in the fair value of the forward contract. Credit 10 Record the premium or discount expense. 11 Record the receipt of FCUS. 12 Record settlement of forward contract. Note : journal entry has been entered %3D


Extracted text: On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 180,000 FCUS with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 180,000 FCUS. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply: Forward Rate Spot Rate $0.29 Date (to April 30, 2018) $ 0.28 November 1, 2017 December 31, 2017 April 30, 2018 0.27 0.25 0.26 N/A Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610. a. Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. b. What is the impact on net income in 2017? C. What is the impact on net income in 2018? Complete this question by entering your answers in the tabs below. Req A Req B and C Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. (Do not round intermediat