A US Company, with a December 31 Year-End, Enters into the the Following

Essay

A U.S. company, with a December 31 year-end, enters into the following forward contracts on October 15, 2020:
1. Agreement to buy 100,000,000 yen (¥) on January 15, 2021
2. Agreement to sell 1,000,000 shekels (?) on February 18, 2021
Forward and spot rates for yen and shekels are as follows:
$$\begin{array} { | l | c | c | c | c | } \hline & \begin{array} { c } \text { Spot Rate } \\\text { for } \\\text { Yen }\end{array} & \begin{array} { c } \text { Forward Rate for } \\\text { January 15, 2021 } \\\text { Delivery of Yen }\end{array} & \begin{array} { c } \text { Spot Rate } \\\text { for } \\\text { Shekels }\end{array} & \begin{array} { c } \text { Forward Rate for } \\\text { February 18, 2021 } \\\text { Delivery of Shekels }\end{array} \\\hline \text { October 15, 2020 } & \$ 0.00940 & \$ 0.00942 & \$ 0.2879 & \$ 0.2884 \\\hline \text { December 31, 2020 } & 0.00938 & 0.00939 & 0.2799 & 0.2880 \\\hline\end{array}$$ Required
a. How are the forward contracts valued on the company's December 31, 2020 balance sheet? For each contract, specify the amount and whether it is a current asset or a current liability.
b. Assume that the forward contract to buy yen is a hedge of a ¥100,000,000 forecasted purchase from suppliers in Japan. Make the adjusting entry for this contract at December 31, 2020.
c. Assume the forward contract to sell shekels is a hedge of a ?1,000,000 loan receivable currently on the company's books. Make the adjusting entry for this contract at December 31, 2020.