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Icebreaker Company (a U.S.-based company) purchases material

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Icebreaker Company (a U.S.-based company) purchases materials froma foreign supplier on December 1, 2020, with payment of 28,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Icebreaker enters into a forward contract to purchase 28,000 dinars on March 1, 2021.Relevant exchange rates for the dinar on various dates are as follows:?ateSpot RateForward Rate(to March 1, 2021)December 1, 2020$4.60?4.675?ecember 31, 2020?.70?4.800?arch 1, 2021?.85?N/A?-a-1.?ssuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars.?a-2.?hat is the impact on 2020 net income?-a-3.?hat is the impact on 2021 net income?-a-4.?hat is the impact on net income over the two accounting periods?-b-1.?ssuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars.?b-2.?hat is the impact on net income in 2020 and in 2021?-b-3.?hat is the impact on net income over the two accounting periods?No Date General Journa lDebit Credit1 12/01/2020 Cost of goods sold Accounts payable (dinars)2 12/01/2020 No journal entry required3 12/31/2020 Foreign exchange gain or loss Accounts payable (dinars)4 12/31/2020 Forward contract Foreign exchange gain or loss 5 12/31/2020 No journal entry required6 12/31/2020 Foreign exchange gain or loss Other comprehensive income7 03/01/2021 Foreign exchange gain or loss Accounts payable (dinars)8 03/01/2021 Forward contract Foreign exchange gain or loss9 03/01/2021 No journal entry required10 03/01/2021 Accumulated other comprehensive income Foreign exchange gain or loss11 03/01/2021 Foreign currency (dinars) Cash12 03/01/2021 Accounts payable (dinars) Foreign currency (dinars)What is the debts and credits?-BusinessAccountingACC 101

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