Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Problem: On April 1 of the current year, Econ Ltd. ordered maps from a foreign supplier for 500,000 units of foreign currency (FC). On April 2, Econ entered a forward contract as a cash flow hedge to acquire 500,000 FC on July 31 for $0.31. On July 31, the maps arrived and Econ paid the supplier in full and settled the forward contract.  Econ has an April 30 year-end.

 

Spot Rate

Forward Rate

April 1 and 2

FC 1 = $0.280

FC 1 = $0.310

April 30

FC 1 = $0.270

FC 1 = $0.305

July 31

FC 1 = $0.320

FC 1 = $0.320

Required:

1) Prepare dated journal entries to record the transactions shown above.

2) Assume that Econ did not enter into a forward contract.  Prepare dated journal entries to record the transactions above.

3) Assume that Econ had entered into a forward contract that was designated a fair value hedge.  Prepare dated journal entries to record the transactions above.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M982

Have any Question? 


Related Questions in Financial Accounting

1 describe the formal procedures associated with issuing

1. Describe the formal procedures associated with issuing long-term debt. 2. Describe the nature, type, and valuation of current liabilities. 3. Explain the accounting for different types of loss contingencies. 4. Explai ...

Qualified stock purchaseabc corporation acquired 20 of xyz

Qualified Stock Purchase ABC Corporation acquired 20% of XYZ Corporation on January 2, April 1, June 1, October 1 and December 31 of the year 20x1. a. Has a qualified stock purchase taken place? How long does ABC Corpora ...

There are four main methods for documenting specific

There are four main methods for documenting specific business processes, systems, and so on. If your company asked you to document the workflow in your department, where would you start and why? How would that change if ...

Project - transactionsinstructionsthis project is a review

Project - Transactions/Instructions This project is a review of the accounting cycle that has been covered during class. You have two weeks to complete the project. Please prepare all information in a professional manner ...

Assessmentpurpose this assessment is designed to allow

Assessment Purpose: This assessment is designed to allow students to demonstrate a higher level of understanding of accounting standards and theoretical and philosophical approaches, as they apply to the resolution of mo ...

Assignemntpart 1 the following information is available for

Assignemnt PART 1: The following information is available for GFI's maintenance cost over the last seven months. Use the high low method to estimate the fixed and variable components of its maintenance cost. Would this b ...

Assignmentjohns house painting company has the following

Assignment John's House Painting Company has the following transactions for the year 1. December 1 - Issued capital stock for $100,000 to start a house painting business. 2. December 1 - Paid one year insurance premium c ...

Assignmentthe company is premier inc that needs to be usedi

Assignment The company is Premier Inc. that needs to be used. I will need a 3-4 pageanalysis and a Power Point presentation (no more than 10 slides) Write your paper, read carefully, and consider possible edits and chang ...

Application calculating variances and analyzing the

Application: Calculating Variances and Analyzing the Results While many organizational costs can be planned for, the actual results may vary from the initial projections. Assessing how these variances impact the bottom l ...

Defend the answerlisa conducts a qualitative study of

DEFEND THE ANSWER Lisa conducts a qualitative study of people's online shopping behavior. She compares her results to that of similar studies and finds a similarity in coding across multiple studies. On the basis of the ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen