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Answer Part II Only.

$(1)$ Record the entry to purchase the equipment with a

payable denominated in Swiss francs.

Record the entry for the $60-$day forward exchange

contract signed.

$(3)$ Record the entry to revalue accounts payable to the

current U$.$S$.$ dollar equivalent.

Record the revaluation of the foreign currency receivable

with the effective portion of the change in fair value of

the cash flow hedging derivative recorded in other

comprehensive income. $(5)$ Record an amount to reclassify the comprehensive

income to fully offset the foreign currency transaction

loss on the revaluation of the foreign currency

denominated account payable.

Record the revaluation of the foreign currency receivable

to the current equivalent U$.$S$.$ dollar value and record the

effective portion of the change into other comprehensive

income in accordance with ASC $815.$

$7$ Record the revaluation of the foreign currency accounts

payable to current U$.$S$.$ dollar value using the spot rate in

accordance with ASC $830.(8)$ Record an amount to reclassify the comprehensive

income to fully offset the foreign currency transaction

loss on the revaluation of the foreign currency

denominated account payable.

Record the payment of U$.$S$.$ dollars to an exchange

broker for the forward contract.

$(1)$ Record the receipt of Swiss francs from the exchange

broker.

$(1)$ Record the settlement of the foreign currency payable. $$

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