Ask Question, Ask an Expert


Ask Accounting Basics Expert

On June 1, Castejon Corp. purchased merchandise from a Brazilian supplier at a price of 1,200,000 reals. The invoice is due on September 1. O June 1, Castejon signed a forward contract to purchase 1,200,000 reals on September 1. Information you may find useful is below:

Date Spot Rate Forward rate
June 1 $0.085 $0.089
June 30 0.088 0.092
Sept 1 0.082 n/a

Castejon's incremental borrowing rate is 12% per annum. Castejon needs to prepare quarterly financial statements at June 30.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M945863

Have any Question? 

Related Questions in Accounting Basics

Exercise 1making special pricing decisionssuppose the

Exercise 1 Making special pricing decisions Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for ...

1 the ultimate responsibility for the formulation of

1) The ultimate responsibility for the formulation of financial reporting rules in the US rests with: a. Congress b. Financial accounting standards board c. IRS d. Securities & exchange commission 2) In countries where t ...

The balance of the 060 par common stock account for company

The balance of the $0.60 par Common Stock account for Company was $60,000 before its recent 3-for-1 stock split. The market price of the stock was $30 per share. What occurred as a result of the split? a. The par value p ...

1 under gasb rules for the financial reporting entitya

1. Under GASB rules for the financial reporting entity a. component units are included if the primary government is financially accountable for their operations B. counties are component units of the state government C. ...

Flexible budget 25cost formula to calculate manufacturing

Flexible Budget (25%) Cost Formula to calculate Manufacturing Overhead Emory Company as follow. Cost Formula relevant for range 15000 to 25.000 machine hours annually. a. Make flexible budget for increment 5,000 machine ...

Assignment changing the aismigrating to a new accounting

Assignment: Changing the AIS Migrating to a new accounting information system is not an easy task. Many firms have struggled with this process, even though our textbook makes the process seem quite straightforward. Recen ...

When measuring an impairment loss for a long-term operating

When measuring an impairment loss for a long-term operating asset, must firms determine the fair market value using a discounted cash flow model? Explain.

Actg5210p assignment-sofias furniture sf makes residential

ACTG5210P Assignment- Sofia's Furniture ("SF") makes residential wet bar equipment from real wood and sells them through three sales outlets. The product line consists of two styles of bar stools, three styles of bar cou ...

Example of manual accounting - the bad old daysthe benjamin

Example of Manual Accounting - The bad old days The Benjamin Company completed these transactions during January of the current year: January 1, Began business by selling stock for $750,000.00.   January 1, Rented office ...

Assignment - auditing acct30001 during the last 12 months

Assignment - Auditing ACCT3000 1. During the last 12 months, Pacific Water Designs Ltd (PWD) profits have increased because of a significant drop in the cost of component parts from Germany as well as the introduction of ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate