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Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 18,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 18,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows:

Date	Spot Rate			Forward Rate (to March 1, 2018)
December 1, 2017	$	3.60		$	3.675
December 31, 2017		3.70			3.800
March 1, 2018		3.85			N/A

Brandlin's incremental borrowing rate is 15 percent. The present value factor for two months at an annual interest rate of 15 percent (1.25 percent per month) is 0.9755. Brandlin must close its books and prepare financial statements at December 31.

a-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U.S. dollars.

a-2. What is the impact on 2017 net income?

a-3. What is the impact on 2018 net income?

a-4. What is the impact on net income over the two accounting periods?

b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars.

b-2. What is the impact on 2017 net income?

b-3. What is the impact on 2018 net income?

b-4. What is the impact on net income over the two accounting periods?

I wrote the entries below for question A1. I need the amount totals.

Please also Solve questions A2 - B4

1	12/01/2017	Accounts receivable (K)
2			Sales
3
4	2	12/01/2017	No journal entry required
5
6	3	12/31/2017	Accounts receivable (K)	1,800.00
7			Foreign exchange gain		1,800.00
8
9	4	12/31/2017	Accumulated other comprehensive income
10			Forward contract
11
12	5	12/31/2017	Loss on forward contract	1,800.00
13			Accumulated other comprehensive income		1,800.00
14
15	6	12/31/2017	Accumulated other comprehensive income
16			Premium revenue
17
18	7	03/01/2018	Accounts receivable (K)
19			Foreign exchange gain
20
21	8	03/01/2018	Accumulated other comprehensive income
22			Forward contract
23
24	9	03/01/2018	Loss on forward contract
25			Accumulated other comprehensive income
26
27	10	03/01/2018	Accumulated other comprehensive income
28			Premium revenue
29
30	11	03/01/2018	Foreign currency (K)
31			Accounts receivable (K)
32
33	12	03/01/2018	Forward contract
34			Cash

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