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:

Encoding

The process of converting information into a form that can be stored in memory, typically involving sensory input being transformed into meaningful representations.

Storage

The process of retaining information or materials over time, applicable both to memory in the human brain and to physical repositories like warehouses.

Retrieval

Refers to the process of accessing and retrieving information from one's memory.

Acquisition

The process of learning or acquiring new information or behaviors.