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

question 51

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.
Problem 74 (continued):

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Definitions:

Attracted

Feeling drawn or held towards something or someone, typically due to qualities found appealing.

Drug

Any substance that causes a change in an organism's physiology or psychology when consumed, often used in the context of medication or recreational substances.

Ekman's Work

The research conducted by psychologist Paul Ekman, primarily focusing on the universality of facial expressions and their relation to emotions.

Cross-cultural Agreement

The consensus or similarity of beliefs, values, practices, and norms across different cultural or ethnic groups.