On December 1, 20X8, Denizen Corporation Entered into a 120-Day

question 37

Essay

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:
Required:
Prepare all journal entries for Denizen Corporation.

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Definitions:

Employee

An individual who works part-time or full-time under a contract of employment, providing labor or services to an employer for compensation.

Responsibilities

Duties or obligations required to be fulfilled by an individual, group, or organization.

Employment Relationship

The legal link between employers and employees typically defining the rights and duties of both parties.

Wrongful Dismissal

Refers to a situation where an employee's termination from a job violates the contract of employment, or labor laws, especially without adequate notice or reasons.