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.

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The Answer of 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.

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