Homework Answers
Cash to be paid for accounts payable will be determined on the basis of exchange rate of prevailing on the date of payment i.e. on September 1.
Exchange rate on September 1
1 $ = 5.345 Krone
Hence, 1 Krone = 1/5.345 $
198,000 Krone = 1/5.345 x 198,000
= $37,044
Hence, Avery will have to pay $37,044.
Third option is correct option.
Kindly comment if you need further assistance.
Thanks‼!
Add Answer to:
On May 1, 2019, Avery Corporation purchased merchandise from a Danish firm for 198,000 Danish krone...
On August 1, 2019, when the spot rate was US$1 - C$102, Avery Corporation of Winnipeg,...
On August 1, 2019, when the spot rate was US$1 - C$102, Avery Corporation of Winnipeg, Manitoba, ordered equipment from an American supplier for US$250,000. Delivery was scheduled for the month of September, with payment in full on delivery Upon placing the order, Avery immediately entered into a forward contract with its bank to purchase US$250,000 on September 15, 2019 at the forward rate of US$ = C$1.01. The equipment was received on September 15, 2019, when the spot rate...
On August 1, 2019, when the spot rate was US$1 - C$102, Avery Corporation of Winnipeg,...
On August 1, 2019, when the spot rate was US$1 - C$102, Avery Corporation of Winnipeg, Manitoba, ordered equipment from an American supplier for US$250,000. Delivery was scheduled for the month of September, with payment in full on delivery Upon placing the order, Avery immediately entered into a forward contract with its bank to purchase US$250,000 on September 15, 2019 at the forward rate of US$ = C$1.01 The equipment was received on September 15, 2019, when the spot rate...
On August 1, 2019, a firm purchased a 1-year insurance policy for $6,900 and paid the...
On August 1, 2019, a firm purchased a 1-year insurance policy for $6,900 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is Multiple Choice $2,300 $4,025 $6,900 $2,875 On April 1, 2019, a firm accepted a 6-month, 10 percent note for $2,400 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is Multiple Choice $60...
On March 1, Pimlico Corporation (a U.S.-based company) expects to order merchandise from a supplier in...
On March 1, Pimlico Corporation (a U.S.-based company) expects to order merchandise from a supplier in Sweden in three months. On March 1, when the spot rate is $0.43 per Swedish krona, Pimlico enters into a forward contract to purchase 567,500 Swedish kroner at a three-month forward rate of $0.440. At the end of three months, when the spot rate is $0.436 per Swedish krona, Pimlico orders and receives the merchandise, paying 567,500 kroner. What amount does Pimlico report in...
19. On August 1, Year 1, Huntington Corporation placed an order to purchase merchandise from a...
19. On August 1, Year 1, Huntington Corporation placed an order to purchase merchandise from a foreign supplier at a price of 100,000 dinars. The merchan- dise is received and paid for on October 31, Year 1, and is fully consumed by December 31, Year 1. On August 1, Huntington entered into a forward contract to purchase 100,000 dinars in three months at the agreed-on forward rate. The forward contract is properly designated as a fair value hedge of a...
P13-11 Importing and Exporting Transactions; Hedges of Exposed Foreign Currency Asset and Lia- bility Positions; Identifiable...
P13-11 Importing and Exporting Transactions; Hedges of Exposed Foreign Currency Asset and Lia- bility Positions; Identifiable Foreign Currency Commitment; Speculative Forward Exchange Contract; Intervening Balance Sheet Date Reynolds Corporation has extensive dealings with foreign suppliers and buyers. During the first six months of the fiscal year 19X5, Reynolds reported the following foreign transactions, all of which are denominated in the local currency of the respec- tive foreign firm. Reynolds prepares financial statements on June 30 and December 31 of each...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $6,240 per year, resulting in a balance in accumulated depreciation of $12,480 at December 31, 2021. The machinery is sold on September 1, 2022, for $27,060. Prepare journal entry to update depreciation for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the...
Multiple Cholce L Select the best answer for cach of the following EXERCISE 12-5 A sale...
Multiple Cholce L Select the best answer for cach of the following EXERCISE 12-5 A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the dollar and the curreney in which the transaction was denominated changed so that a loss was incurred. This loss should be included as a(n) 1. (a) Extraordinary...
Oriole Corporation owns machinery that cost $27,200 when purchased on July 1, 2017. Depreciation has been recorded at a...
Oriole Corporation owns machinery that cost $27,200 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,264 per year, resulting in a balance in accumulated depreciation of $11,424 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,280. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Stellar Corporation owns machinery that cost $26,800 when purchased on July 1, 2017. Depreciation has been...
Stellar Corporation owns machinery that cost $26,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,216 per year, resulting in a balance in accumulated depreciation of $11,256 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,070. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
On August 1, 2019, when the spot rate was US$1 - C$102, Avery Corporation of Winnipeg, Manitoba, ordered equipment from an American supplier for US$250,000. Delivery was scheduled for the month of September, with payment in full on delivery Upon placing the order, Avery immediately entered into a forward contract with its bank to purchase US$250,000 on September 15, 2019 at the forward rate of US$ = C$1.01. The equipment was received on September 15, 2019, when the spot rate...
On August 1, 2019, when the spot rate was US$1 - C$102, Avery Corporation of Winnipeg, Manitoba, ordered equipment from an American supplier for US$250,000. Delivery was scheduled for the month of September, with payment in full on delivery Upon placing the order, Avery immediately entered into a forward contract with its bank to purchase US$250,000 on September 15, 2019 at the forward rate of US$ = C$1.01 The equipment was received on September 15, 2019, when the spot rate...
On August 1, 2019, a firm purchased a 1-year insurance policy for $6,900 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is Multiple Choice $2,300 $4,025 $6,900 $2,875 On April 1, 2019, a firm accepted a 6-month, 10 percent note for $2,400 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is Multiple Choice $60...
19. On August 1, Year 1, Huntington Corporation placed an order to purchase merchandise from a foreign supplier at a price of 100,000 dinars. The merchan- dise is received and paid for on October 31, Year 1, and is fully consumed by December 31, Year 1. On August 1, Huntington entered into a forward contract to purchase 100,000 dinars in three months at the agreed-on forward rate. The forward contract is properly designated as a fair value hedge of a...
P13-11 Importing and Exporting Transactions; Hedges of Exposed Foreign Currency Asset and Lia- bility Positions; Identifiable Foreign Currency Commitment; Speculative Forward Exchange Contract; Intervening Balance Sheet Date Reynolds Corporation has extensive dealings with foreign suppliers and buyers. During the first six months of the fiscal year 19X5, Reynolds reported the following foreign transactions, all of which are denominated in the local currency of the respec- tive foreign firm. Reynolds prepares financial statements on June 30 and December 31 of each...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $6,240 per year, resulting in a balance in accumulated depreciation of $12,480 at December 31, 2021. The machinery is sold on September 1, 2022, for $27,060. Prepare journal entry to update depreciation for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the...
Multiple Cholce L Select the best answer for cach of the following EXERCISE 12-5 A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the dollar and the curreney in which the transaction was denominated changed so that a loss was incurred. This loss should be included as a(n) 1. (a) Extraordinary...
Oriole Corporation owns machinery that cost $27,200 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,264 per year, resulting in a balance in accumulated depreciation of $11,424 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,280. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Stellar Corporation owns machinery that cost $26,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,216 per year, resulting in a balance in accumulated depreciation of $11,256 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,070. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Most questions answered within 3 hours.
-
Identical twins come from a single egg that split into two
embryos, and fraternal twins are...
asked 8 minutes ago -
The chemical formula for any CFC, HCFC, or HFC can be obtained
by adding 90 to...
asked 10 minutes ago -
Price discrimination adds to social welfare in the form of
(i)
increased total surplus.
(ii)
reduced...
asked 5 minutes ago -
Find and Sketch 6 point circular convolution of two sequences;
N=6
x[n] = [1,2,3,4]
h[n]= [0,0,1,0]
asked 19 minutes ago -
Using c# visual studio
Game of Life
The Game of Life program assignment follows the material...
asked 12 minutes ago -
True or false
Andrea owes Joe $75,
due on Monday. She cannot get him the money...
asked 18 minutes ago -
Sunshine Company only produced one product and has the following
costs:
Number of units produced each...
asked 26 minutes ago -
What must her minimum speed be just as she leaves the top of the
cliff so...
asked 32 minutes ago -
10.2 Calculate the energy that must be absorbed in stopping a
100 tonne airbus airliner travelling...
asked 35 minutes ago -
Q3- What are the pro’s and con’s of using a web farm?
Please no hand
writing,...
asked 42 minutes ago -
For a nonpolar solute, why does the mobile phase strength
increase as the solvent becomes less...
asked 46 minutes ago -
The times per week a student uses a lab computer are normally
distributed, with a mean...
asked 54 minutes ago