On December 1,20X8,Denizen Corporation Entered into a 120-Day Forward Contract

Essay

On December 1,20X8,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 1,20X8,to purchase electronic goods on January 30,with payment due on March 31,20X8.The derivative is designated as a fair value hedge.The direct exchange rates follow:

Required:
Prepare all journal entries for Denizen Corporation.