Prepare all journal entries for denizen corporation

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Question

On december 1, 20x8, denizen corporation entered into a 120-day forward contract to purchase 200,000 canadian dollars (C$). Denizen's fiscal year ends on december 31. the forward contract was to hedge an anticipated purchase of electronic goods on january 30, 20x9.

The purchase took place on january 30, with payment due on march 31, 20x9. the derivative is designated as a cash flow hedge. The company uses the forward exchange rate to measure hedge effectiveness. the direct exchange rates follow:

Spot Rate Forward rate for march 1, 20x9

12/1/20x8 0.940 0.944

12/31/18 0.945 0.947

1/30/19 0.942 0.943

3/31/19 0.941

Prepare all journal entries for denizen corporation.

Reference no: EM132319334

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