Alman Company sold pharmaceuticals to a Swedish company for 200,000 kronor (SKr) on April 20, with settlement to be in 60 days. On the same date, Alman entered into a 60-day forward contract to sell 200,000 SKr at a forward rate of 1 SKr= $0.167 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were April 20 June 19 Required: a. Prepare all necessary entries related to the foreign transaction and the forward contract. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Skr 1 - $0.170 Skr 1 $0.165 View transaction list Journal entry worksheet < 1 2 3 Record the sales on account. Note: Enter debits before credits. 4 5 6 7
Q: 1. Your company is making experimental turbochargers for a new design of high-powered farm tractors.…
A: Learning Curve Equation: Y = a Xb Here, Y = Cumulative Average Time Per Unit a = Time taken by the…
Q: Boston Accounting Services provides accounting services to small businesses. The following data…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Indicate where each item would appear on a statement of cash flows using the indirect method by…
A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…
Q: 1. What is the gain on sale of truck on September 30? 2. What is the gain on sale of machinery on…
A: As per our guidelines the solutions is only for one question under a single question or to the first…
Q: When the question states that the balance in the cash at bank account and the bank statement did not…
A: A bank reconciliation statement, as the name indicates, reconciles, the cash/bank balance as per the…
Q: Financial statement analysis applies analytical tools to financial stateme and related data for…
A: Financial statements analysis is used by internal and external stakeholders to evaluate business…
Q: he objectives of budgeting are to: a. Establish specific goals for future operations b. Execute…
A: The correct option with proper explanation areas follows
Q: ✓ பப 100 ■ ■ ■ July 1 July 1 ■ July 1 July 3 Invoice a new customer $6,805.00 for a completed mowing…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: A company aims to generate £70,000 profit in the coming period, during which it expects to sell…
A: Required sales units in order to achieve a target profit = (Profit + Fixed cost) / Contribution…
Q: Imagine you are a manager at PepsiCo with the following scenario assumptions, would you try to…
A: Management- Management is a common occurrence. It is a fairly well-known and frequently used phrase.…
Q: Prepare year-end adjusting journal entries for M&R Company as of December 31 for each of the above…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Select the necessary words from the list of possibilities to complete the following statements. 1.…
A: Auditing is the verification of financial statements and based upon which the auditor provides the…
Q: Which one of the following statements regarding the coefficient of determination is NOT correct?
A: Coefficient of correlation is the measure which is used by the management of the company so that it…
Q: Holly, Incorporated has a building that originally cost $425,000. Holly expects to be able to sell…
A: The residual value is the resale value of the asset after its useful life of assets. It is also…
Q: Discuss the responsibilities of and auditor’s expert.
A: The auditor’s expert refers to the organization or an individual that possesses expertise in a…
Q: 18. The correct sequence of steps in the accounting cycle is to prepare the A. (1) financial…
A: Accounting Cycle tells how the transactions are processed in accounting.
Q: 13. Return on stockholders' equity 14. Return on common stockholders' equity 15. Earnings per share…
A: Introduction: - Ratio analysis used to analysis business performance. It gives idea of company…
Q: 1. Your company is making experimental turbochargers for a new design of high-powered farm tractors.…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local…
A: Inventory- An essential current asset for a manufacturing company is its inventory. Inventory is the…
Q: The following information is available for Sunland Corporation for the year ended December 31, 2022:…
A: Corporate income statement :- An income statement is a financial statement that shows you the…
Q: What is meant by the evaluation of a client's ability to continue as a going concern? What are some…
A: Going concern concept states that the financial statements of an entity should be prepared on the…
Q: PPF Corporation intends to expand, and new projects are expected to yield an average of P375, 000.00…
A: EVA is indeed the cumulative differences in a company's rate of return (RoR) over its cost of…
Q: Name the 3 inventory accounts to appear on a Balance Sheet for a manufacturing business and describe…
A: Balance sheet is one of the financial statements that an entity has to prepare to know its financial…
Q: An asset's book value or carrying value is its: Multiple Choice O accumulated depreciation. cost…
A: The book value or carrying value of the machine is the value that carries on the balance sheet of…
Q: The size of a country’s national debt should not be of much economic concern as long as:
A: Government too requires funds so that the country or even state can run by them, it is the amounts…
Q: Currently, Grab Industrial makes 1,000 tyres every month. For sales to ordinary customers, the…
A: calculation of cost to make 2000 tyres are as follows
Q: In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local…
A: Inventory Management- Inventory management is the process of ensuring that the appropriate quantity…
Q: The following interest income are earned by May during the year: a. Interest income earned from bank…
A: 1. her income subject to final tax = 80,000 + 75,000 + 40,000 = 1,95,000 ( C)
Q: What possible actions would an auditor might take if a client’s financial statements depart from…
A: Introduction: A set of financial statements summarizes a company's monetary results, financial…
Q: A manufacturer offers a 30/25 chain discount if the invoice subtotal is above $1,000. If the list…
A: calculation of chain discount are as follows
Q: Under what type of responsibility would cost accounting go under? managerial accounting, tax…
A: Cost accounting is a branch of accounting which is used to determine the costs of different…
Q: The standard cost card for product Alpha is as follows: £ Direct material 5kg@ £11.50…
A: Lets understand the basics. Direct material price variance is variance between the rate at which…
Q: The purchaser believes that 35 pairs of jeans should be kept in reserve. Every two weeks, she…
A: Introduction: This rate represents the number of times a company's stock is 'turned over,' or…
Q: Ruby is looking at the results of a Capital Investment Appraisal. The report shows that, assuming a…
A: Investment Decisions Based on NPV - Invest if NPV is positive as NPV dictates the excess of Present…
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: The dividend per share is calculated as total dividend divided by number of shares outstanding. The…
Q: Assume you sold 10,000 chrysanthemums at 25 pesos apiece in November of last year. A 10% commission…
A: One of the most essential components of a company's revenue statement is sales. It refers to the…
Q: January 2, 2021, Apple Co. sold merchandise to Mango, Inc. for P1,500,000. The cost of items to…
A: In installment sale, revenue is recognise at the time of cash collection not at the time of sale.…
Q: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in…
A: Working: Computation:
Q: Cindy’s husband Allen dies on March 1, 2021. Cindy and Allen have no children. What is Cindy’s…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Loma Linda, Incorporated sells a long-lived asset that originally cost $202,000 for $52,000 on…
A: Depreciation is considered an expense that is charged on the value of the Asset. It can be…
Q: Figures are in millions. Total assets Total liabilities Net sales Net income December 31, 2019…
A: Total asset in year 2019=$930.90 millions Total asset in year 2018=$920.10 millions Asset…
Q: Vacation Corporation produces a single product. Data concerning the company's first year of…
A: Its discrepancy in variable cost and absorption is due to how fixed production overhead is treated.…
Q: Which of the following statements is NOT a benefit of return on investment (ROI) as a measure of the…
A: Investment- An investment is a type of asset created by an investor using his or her own money and…
Q: After working for 30 years and due to old age (55 years), Rufino retired from his employment on…
A: Individuals or HUFs who had voluntarily retired before attaining 60 years of age will incur the…
Q: Tiffany and Carlos are married and have two children, Mikey is 13 years old and Susie is 25. Both…
A: Here asked for multi question we will solve for first question as per the guidelines. If you need…
Q: total amount of revenue t
A: Revenue recognition refers to the concept that enables the business for computing the amount of…
Q: Accounting for long-term investments in equity securities with controlling influence uses the:…
A: Introduction: Equity securities are claims on a company's net assets that represent ownership…
Q: Question 2 The following information relates to three possible capital expenditure projects. Because…
A: Net Present Value- The net present value demonstrates its applicability in capital budgeting. It…
Q: Requirement A Prepare the journal entries with narrations to record the following: The issuances…
A: A company is being formed on 1st January 2021, the company's charter has authorized share capital…
Q: What are the differences between a product cost and a period cost
A: In accounting we say that costs are often product costs or period costs. The difference between the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Myway Company sold equipment to a Canadian company for 100,000 Canadian dollars (C$) on January 1, 20X9, with settlement to be in 60 days. On the same date, Alman entered into a 60-day forward contract to sell 100,000 Canadian dollars at a forward rate of 1 C$ = $.94 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were: January 1 (1 C$ = $0945); March 1 (1C$ = $0.930). Based on the preceding information, the entry to revalue foreign currency payable to current U.S. dollar value on March 1 will have: A. a credit to Foreign Currency Transaction Gain for $1,500. B. a debit to Foreign Currency Transaction Loss for $2,500. C. a debit to Foreign Currency Transaction Loss for $1,500. D. a credit to Foreign Currency Transaction Gain for $1,000.On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.09 per Norwegian krone, Derby enters into a forward contract to purchase 6 02,500 Norwegian kroner at a three-month forward rate of $0.10. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.098 per Norwegian krone, Derby orders and receives the merchandise, paying 602,500 kroner. The merchandise is sold within 30 days. Required: a-1. Prepare all journal entries for Derby Corporation related to this transaction and hedge. a-2. What amount should Derby Corporation report in the current year's net income as cost of goods sold? b. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss?Melton Company sold equipment to a Canadian company for 100,000 Canadian dollars (C$) on January 1, 20X9, with settlement to be in 60 days. On the same date, Melton entered into a 60-day forward contract to sell 100,000 Canadian dollars at a forward rate of 1 C$ = $0.94 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were: January 1, 20X9 March 1, 20X9 1 C$=$0.945 1 C$=$0.930 Based on the preceding information, the entry to revalue foreign currency payable to current U.S. dollar value on March 1 will have: O a credit to Foreign Currency Transaction Gain for $1,000. O a credit to Foreign Currency Transaction Gain for $1,500. O a debit to Foreign Currency Transaction Loss for $1,500. O a debit to Foreign Currency Transaction Loss for $2,500.
- On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.45 per Norwegian krone, Derby enters into a forward contract to purchase 527,500 Norwegian kroner at a three-month forward rate of $0.490. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.482 per Norwegian krone, Derby orders and receives the merchandise, paying 527,500 kroner. The merchandise is sold within 30 days. What amount(s) does Derby report in net income as a result of this cash flow hedge of a forecasted transaction and the related purchase and sale of merchandise? Cost of goods sold of $254,255 plus foreign exchange loss of $4,220 Cost of goods sold of $258,475 Cost of goods sold of $237,375 plus foreign exchange loss of $21,100 Cost of goods…On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.28 per Norwegian krone, Derby enters into a forward contract to purchase 617,500 Norwegian kroner at a three-month forward rate of $0.29. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.286 per Norwegian krone, Derby orders and receives the merchandise, paying 617,500 kroner. The merchandise is sold within 30 days. Required: a-1. Prepare all journal entries for Derby Corporation related to this transaction and hedge. a-2. What amount should Derby Corporation report in the current year's net income as cost of goods sold? b. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss? Complete this question by entering your…On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.33 per Norwegian krone, Derby enters into a forward contract to purchase 635,000 Norwegian kroner at a three-month forward rate of $0.360. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.351 per Norwegian krone, Derby orders and receives the merchandise, paying 635,000 kroner. The merchandise is sold within 30 days. What amount(s) does Derby report in net income as a result of this cash flow hedge of a forecasted transaction and the related purchase and sale of merchandise? Multiple Choice Cost of goods sold of $222,885 plus foreign exchange loss of $5,715 Cost of goods sold of $228,600 less foreign exchange gain of $19,050 Cost of goods sold of $209,550…
- On November 1, 2020, Americo, Corporation sold wine on credit to Venezia Company for €800,000. Payment is not due for 120 days. Thus, the transaction will be settled on February 28, 2021. On November 1, 2020, Americo, Corporation also entered a 120-day forward contract to sell €800,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows: SPOT FORWARD 11/1/2020 $ 1.22 $ 12/31/2020 $ 1.18 $ 2/28/2021 $ 1.19 1.24 (120 days) 1.17 (60 days)On November 1, 2021, Americo, Corporation purchased wine on credit from Venezia Company for €800,000. Payment is not due for 120 days. Thus, the transaction will be settled on February 28, 2022. On November 1, 2021, Americo, Corporation also entered a 120-day forward contract to purchase €800,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows: SPOT FORWARD11/1/2021 $ 1.09 $ 1.06 (120 days) 12/31/2021 $ 1.05 $ 1.11 (60 days) 2/28/2022 $ 1.12 JOURNAL ENTRIES ON NOVEMBER 1, 2021 (TRANSACTION DATE): Foreign Currency Transaction YEAR-END OF DECEMBER 31, 2021: JOURNAL ENTRIES:Foreign Currency Transaction FINANCIAL STATEMENT PRESENTATION INCOME STATEMENT JOURNAL ENTRIES ON FEBRUARY 28, 2022 (SETTLEMENT DATE):Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 16,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 16,000 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 a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Date Spot Rate Forward Rate(to March 1, 2021) December 1, 2020 $ 3.40 $ 3.475 December 31, 2020 3.50 3.600 March 1, 2021 3.65 N/A Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. a-2. What is the impact on…
- Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 14,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 14,000 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 a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Date Spot Rate Forward Rate(to March 1, 2021) December 1, 2020 $3.20 $ 3.275 December 31, 2020 3.30 3.400 March 1, 2021 3.45 N/A Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. a-2. What is the impact on 2020 net income? a-3.…On June 1, Maxwell Corporation (a U.S.-based company) sold goods to a foreign customer at a price of 1,110,000 pesos and will receive payment in three months on September 1. On June 1, Maxwell acquired an option to sell 1,110,000 pesos in three months at a strike price of $0.076. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Relevant exchange rates and option premia for the peso are as follows: Date June 1 June 30 September 1 Maxwell must close its books and prepare its second-quarter financial statements on June 30. a-1. Assuming that Maxwell designates the foreign currency option as a cash flow hedge of a foreign currency receivable, prepare journal entries for the export sale and related hedge in U.S. dollars. a-2. What is the impact on net income over the two accounting periods? b-1. Assuming that Maxwell designates the foreign currency option as a fair value…On June 1, Maxwell Corporation (a U.S.-based company) sold goods to a foreign customer at a price of 1,100,000 pesos and will receive payment in three months on September 1. On June 1, Maxwell acquired an option to sell 1,100,000 pesos in three months at a strike price of $0.074. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Relevant exchange rates and option premia for the peso are as follows: Date Spot Rate Put Option Premium for September 1 (strike price $0.074) June 1 $ 0.074 $ 0.0037 June 30 0.073 0.0028 September 1 0.072 N/A Maxwell must close its books and prepare its second-quarter financial statements on June 30. Required: a-1. Assuming that Maxwell designates the foreign currency option as a cash flow hedge of a foreign currency receivable, prepare journal entries for the export sale and related hedge in U.S. dollars. a-2. What is the…