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Problem 9-31 (LO 9-4) Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2015, with payment of 26,000 korunas to be received on March 1, 2016. Brandlin enters into a forward contract on December 1, 2015, to sell 26,000 korunas on March 1, 2016. Relevant exchange rates for the koruna on various dates are as follows: Forward Rate to March 1 Date December 1, 2015 December 31, 2015 March 1, 2016 Spot Rate 2016) $ 3.70 3.80 3.95 3.775 3.900 NIA Brandlin's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.) Answer is not complete No Date General Journal Debit Credit 12/01/2015 Accounts receivable (K) 96,200.00 Sales 96,200.00 12/01/2015 No journal entry require 12/31/2015 Accounts receivable (K) Foreign exchange gain 12/31/2015 Accumulated other comprehensive income Forward contract 12/31/2015 2,600.00 Loss on forward contract Accumulated other comprehensive income 2,600.00 12/31/2015 Accumulated other comprehensive income Premium revenue 03/01/2016 Accounts receivable (K) 3,900.00 Foreign exchange gain 3,900.00 03/01/2016 Accounts receivable (K) 03/01/2016 Accounts receivable (K) Foreign exchange gain 10 03/01/2016 Accumulated other comprehensive income Forward contract 03/01/2016 Foreign currency (K) Accounts receivable (K) 12 03/01/2016 Cash Forward contract Foreign currency (K) b-2. What is the impact on 2015 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Impact on 2015 net income b-3. What is the impact on 2016 net income? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Impact on 2016 net income b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations.) Impact on net income

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