On December 1, 2008, Denizen Corporation Entered into a 120-Day

question 26

Essay

On December 1, 2008, 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 a firm commitment agreement made on December 1, 2008, to purchase electronic goods on January 30, with payment due on March 31, 2008. The derivative is designated as a fair value hedge. The direct exchange rates follow: Required:
Prepare all journal entries for Denizen Corporation.

---

Definitions:

Freehold Estates

A type of ownership of real property that grants the holder complete control for an unlimited period.

Uncertain Duration

Describes a time period whose end point is not predetermined or known, often applying to contracts or agreements.

Ownership Interests

The legal rights and claims an individual or entity has over a property or business.

Partition

The division of real property among co-owners so that each owns a specific portion of the property, or the sale of such property and division of proceeds among co-owners.