Forward Contract Homework To record the purchase of inventories for €150,000 when the exchange rate is...
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Forward Contract Homework |
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To record the purchase of inventories for €150,000 when the exchange rate is $1.30:€1. |
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Company purchases forward contract to buy €150,000 at $1.35:€1. |
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Exchange rate at maturity is $1.45:€1. Required: (Answers must be TYPED) Prepare all the journal entries at the inception of the contract through the maturity of the contract. |
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Forward Contract Homework
To record the purchase of inventories for €150,000 when
the exchange rate is...
how do you find foward contract and gain on forward contract? confused cant figure it out...
how do you find foward contract and gain on forward contract?
confused cant figure it out for 9/30. also how would you figure it
out on 10/31? can you please show work. thanks
Date September 15 September 30 October 31 Spot Rate $ 1.25 1.30 1.35 Forward Rate to October 31 $ 1.31 1.34 1.35 Call Option Premium for October 31 (strike price $1.25) $ 0.040 0.075 0.100 Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an...
On December 1, 20X8, Denizen Corporation entered into a 120-day forward contract to purchase 200,000 Canadian...
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 an anticipated purchase of electronic goods on January 30, 20X9. The purchase took place on January 30, with payment due on March 31, 20X9. The derivative is designated as a cash flow hedge. The company uses the forward exchange rate to measure hedge effectiveness. The direct exchange rates follow:...
1. Record the sales and foreign currency accounts receivable. 2. Record the forward contract. 3. Record the entry for changes in the exchange rate. 4. Record the change in the fair value of the forwa...
1. Record the sales and foreign currency accounts
receivable.
2. Record the forward contract.
3. Record the entry for changes in the exchange rate.
4. Record the change in the fair value of the forward
contract.
5. Record the gain or loss on the forward contract.
6. Record the allocation of the premium or discount.
7. Record the entry for changes in the exchange rate.
8. Record the entry to adjust the carrying value of the forward
contract to its...
On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to...
On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 110,000 rubles in four months (on January 31, 2018) and receive $44,000 in U.S. dollars. Exchange rates for the ruble follow: Date Spot Rate Forward Rate (to January 31, 2018) October 1, 2017 $ 0.36 $ 0.40 December 31, 2017 0.39 0.42 January 31, 2018 0.41 N/A Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an...
Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an order with a French...
Vino Veritas Company, a U.S.-based importer of wines and
spirits, placed an order with a French supplier for 2,200 cases of
wine at a price of 260 euros per case. The total purchase price is
572,000 euros. Relevant exchange rates for the euro are as
follows:
Date
Spot Rate
Forward Rate
to October 31
Call Option Premium
for October 31
(strike price $1.65)
September 15
$
1.65
$
1.71
$
0.035
September 30
1.70
1.74
0.070
October 31
1.75
1.75...
Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020,...
Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 27,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Icebreaker enters into a forward contract to purchase 27,000 dinars on March 1, 2021.Relevant exchange rates for the dinar on various dates are as follows: DateSpot RateForward Rate(to March 1, 2021)December 1, 2020$4.50$4.575December...
Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with...
Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 10,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 10,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31,...
Merit & Family purchased engines from Canada for 34,000 Canadian dollars on March 10 with payment...
Merit & Family purchased engines from Canada for 34,000 Canadian dollars on March 10 with payment due on June 8. Also, on March 10, Merit acquired a 90-day forward contract to purchase 34,000 Canadian dollars at C$1 = $0.50. The forward contract was acquired to manage Merit & Family’s exposed net liability position in Canadian dollars, but it was not designated as a hedge. The spot rates were March 10 C$1 = $ 0.49 June 8 C$1 = $ 0.52...
please give just the journal entries PLEASE ANSWER SOON AS POSSIBLE Icebreaker Company (a U.S.-based company)...
please give just the journal entries
PLEASE ANSWER SOON AS POSSIBLE
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 32,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 32,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on...
At January 1, 2021, Brant Cargo acquired equipment by issuing a four-year, $150,000 (payable at maturity),...
At January 1, 2021, Brant Cargo acquired equipment by issuing a four-year, $150,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. (If no entry is required for a transaction/event, select "No journal entry...
how do you find foward contract and gain on forward contract?
confused cant figure it out for 9/30. also how would you figure it
out on 10/31? can you please show work. thanks
Date September 15 September 30 October 31 Spot Rate $ 1.25 1.30 1.35 Forward Rate to October 31 $ 1.31 1.34 1.35 Call Option Premium for October 31 (strike price $1.25) $ 0.040 0.075 0.100 Vino Veritas Company, a U.S.-based importer of wines and spirits, placed an...
1. Record the sales and foreign currency accounts
receivable.
2. Record the forward contract.
3. Record the entry for changes in the exchange rate.
4. Record the change in the fair value of the forward
contract.
5. Record the gain or loss on the forward contract.
6. Record the allocation of the premium or discount.
7. Record the entry for changes in the exchange rate.
8. Record the entry to adjust the carrying value of the forward
contract to its...
Vino Veritas Company, a U.S.-based importer of wines and
spirits, placed an order with a French supplier for 2,200 cases of
wine at a price of 260 euros per case. The total purchase price is
572,000 euros. Relevant exchange rates for the euro are as
follows:
Date
Spot Rate
Forward Rate
to October 31
Call Option Premium
for October 31
(strike price $1.65)
September 15
$
1.65
$
1.71
$
0.035
September 30
1.70
1.74
0.070
October 31
1.75
1.75...
Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 10,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 10,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31,...
please give just the journal entries
PLEASE ANSWER SOON AS POSSIBLE
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 32,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 32,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on...
At January 1, 2021, Brant Cargo acquired equipment by issuing a four-year, $150,000 (payable at maturity), 6% note. The market rate of interest for notes of similar risk is 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Required: 1. to 3. Prepare the necessary journal entries for Brant Cargo. (If no entry is required for a transaction/event, select "No journal entry...
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