Part I Maple Company had the following export and importtransactions during 20X5:

1. On March 1, Maple sold goods to a Canadian company forC$48,000, receivable on May 30. The spot rates for Canadian dollarswere C$1 = $0.65 on March 1 and C$1 = $0.68 on May 30.

2. On July 1, Maple signed a contract to purchase equipment froma Japanese company for ¥420,000. The equipment was manufactured inJapan during August and was delivered to Maple on August 30 withpayment due in 60 days on October 29. The spot rates for yen were¥1 = $0.102 on July 1, ¥1 = $0.104 on August 30, and ¥1 = $0.106 onOctober 29. The 60-day forward exchange rate on August 30, 20X5,was ¥1 = $0.1055.

3. On November 16, Maple purchased inventory from a Londoncompany for £28,000, payable on January 15, 20X6. The spot ratesfor pounds were £1 = $1.65 on November 16, £1 = $1.63 on December31, and £1 = $1.64 on January 15, 20X6. The forward rate onDecember 31, 20X5, for a January 15, 20X6, exchange was £1 =$1.645. Required: Prepare journal entries to record Maple’s importand export transactions during 20X5 and 20X6. (If no entry isrequired for a particular transaction, select "No journal entryrequired" in the first account field.

a.1Prepare journal entries to record Maple’s import and exporttransactions during 20X5 and 20X6

Recordthe sale of goods.

Record the foreign currency transaction gain.

Record the collection of accounts receivable.

Record the cash received

a.2

Record the commitment to purchase the equipment.

Record the purchase of the equipment.

Record the revaluation of the foreign currency.

Record the receipt of foreign currency.

Record the payment of accounts payable.

a.3

ecord the purchase of inventory.

Record the revaluation of the foreign currency.

Record the revaluation of the foreign currency.

Record the receipt of the foreign currency.

Record the payment of accounts payable.

b.

What amount of foreign currency transaction gain or loss wouldMaple report on its income statement for 20X5? Part II Assume that Maple used forward contracts to manage the foreigncurrency risks of all of its export and import transactions during20X5. 1. On March 1, 20X5, Maple, anticipating a weaker Canadian dollar onthe May 30, 20X5, settlement date, entered into a 90-day forwardcontract to sell C$48,000 at a forward exchange rate of C$1 =$0.64. The forward contract was not designated as a hedge. 2. On July 1, 20X5, Maple, anticipating a strengthening of the yen onthe October 29, 20X5, settlement date, entered into a 120-dayforward contract to purchase 420,000 at a forward exchange rate of¥1 = $0.105. The forward contract was designated as a fair valuehedge of a firm commitment. 3. On November 16, 20X5, Maple, anticipating a strengthening of thepound on the January 15, 20X6, settlement date, entered into a60-day undesignated forward exchange contract to purchase £28,000at a forward exchange rate of £1 = $1.67. a.1 repare journal entries to record Maple’s foreign currencyactivities during 20X5 and 20X6. Record the entry for the 90-day forward contract signed for theforecasted foreign currency transaction. Record the revaluation of the foreign currency. Record the payment to the exchange broker in accordance with theforward contract. Record the receipt of cash from the exchange broker. a.2 Record the entry for the 120-day forward contract signed for theforecasted foreign currency transaction. Record the revaluation of the foreign currency. Record the loss on the financial instrument aspect of the firmcommitment. Record the acquisition of the equipment. Record the revaluation of the foreign currency. Record the payment of cash to the exchange broker. Record the receipt of foreign currency. a.3 Record the entry for the signed 60-day undesignated forwardcontract. Record the revaluation of the foreign currency. Record the revaluation of the foreign currency. Record the payment of cash to the exchange broker. Record the receipt of foreign currency. b. What amount of foreign currency transaction gain or loss wouldMaple report on its income statement for 20X5 if Parts I and II ofthis problem were combined

  

c.	What amount of foreign currency transaction gain or loss wouldMaple report on its income statement for 20X6 if Parts I and II ofthis problem were combined?