PT Limited began purchasing parts from China. The Chinese currency is the renminbi (RMB). PT entered into
Question:
PT Limited began purchasing parts from China. The Chinese currency is the renminbi (RMB). PT entered into the following transactions in 2004 and 2005:
Required:
Prepare the journal entries for these transactions, including any adjusting entries needed at the December 31, 2004, fiscal year-end. Specify if no entry is required on any specific date(s).
Transcribed Image Text:
November 1, 2004 December 1, 2004 December 31, 2004 January 15, 2005 Ordered machine parts from the Chinese supplier for RMB2,000,000. The supplier promised to deliver the machine parts at the beginning of December, and payment is expected on January 15, 2005. Received shipment of the machine parts. November 1, 2004 December 1, 2004 December 31, 2004 January 15, 2005 Acquired a forward contract to receive RMB2,000,000 on January 15, 2006, as a hedge of the account payable to the Chinese supplier. The forward contract rate was RMB1 = C$0.16. PT treats all forward con- tracts as executory contracts. Received RMB2,000,000 on the forward contract; paid RMB2,000,000 to the Chinese supplier in settlement of the payable. Spot rates were as follows: RMB1 = C$0.15 RMB1 = C$0.18 RMB1 - C$0.17 = RMB1 = C$0.19
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Rohith Bellamkonda
I am studying in IIT Indore,the most prestigious institute of India.I love solving maths and enjoy coding
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting Theory questions
-
Use a parametrization to find the flux across the surface in the specified direction. F = 4xi + 4yj + 2k outward (normal away from the z-axis) through the surface cut from the bottom of the...
-
Diamond Limited began purchasing parts from China. The Chinese currency is the renminbi (RMB). Diamond entered into the following transactions in 20X1 and 20X2: November 1, 20X1 Ordered machine parts...
-
Consider the deletion of record 5 from the file as shown below compare the relative merits of the following techniques for implementing the deletion: a. Move record 6 to the space occupied by record...
-
Suppose that the rod in Fig. 17.23a is made of copper, is 45.0 cm long and has a cross-sectional area of 1.25 cm2. Let TH = 100.0oC and Tc = 0.0oC. (a) What is the final steady-state temperature...
-
Step 1: Calculate the estimated total manufacturing overhead cost for each department. File Home Insert Page Layout Formulas Data Review View Automate Help Milling Department Overhead Cost (Y)=...
-
The plaintiffs, Lee and Yoon, were the parents of H.L., a South Korean citizen who attended high school in Idaho as part of an exchange program. With permission from both plaintiffs and his host...
-
Error Corrections you have been assigned to examine the financial statements of Zarle Company for the year ended December 31, 2010. You discover the following situations. 1. Depreciation of $3,200...
-
With what group of others do you most closely identify? Those from your home town? Those of your same sex? Religion? Race? Income level? IQ level? Who are the people with whom you feel most relaxed?...
-
At the beginning of 2004, Domo Industries Ltd. obtained a four-year loan of US$200,000 from a bank in New York City. At the time of the loan, the U.S. dollar was worth C$1.20. At the end of 2004, the...
-
On September 7, 2005, Biran Limited signed a contract to buy equipment from a U.S. manufacturer. The price of the equipment was US$500,000. On the same date, Biran entered into a forward contract...
-
The population of bacteria (in millions) in a certain culture t hours after an experimental nutrient is introduced into the culture is Use the differential to approximate the changes in population...
-
In a month , a business has $104,000 in sales and $16,000 in food and beverage costs. If it see 12,000 customers in that month, its gross profit per customer will be $________?
-
April, Inc. issued 3,000 shares of preferred stock for $204,000. The stock has a par value of $68 per share. The journal entry to record this transaction would ________?
-
Jada is single. She reported $2,000 of taxable interest on her 2022 tax return. Her modified adjusted gross income is $220,000. What is the amount of her Net Investment Income Tax?
-
A certain stock has a risk premium of 22%, a Sharpe ratio of 0.58, a correlation of 0.38 with the market, and a beta of 1.07. The risk free rate of interest is 2.7%. Assuming that CAPM holds, find...
-
An appliance store purchased $20,000 worth of washing machines to sell to its customers. The washing machines were purchased using the company credit card. Which accounts are affected by this...
-
1. Describe how commodity futures markets can be used to reduce input price risk. 2. It is January and Tennessee Sunshine is considering issuing $5 million in bonds in June to raise capital for an...
-
The unadjusted trial balance of Secretarial Services is as follows: SECRETARIAL SERVICES Unadjusted Trial Balance as at 31 December 2017 Account Debit Credit Cash at bank Office supplies Prepaid...
-
Troy Company notified Kline Companys shareholders that it was interested in purchasing controlling ownership of Kline and offered to exchange one share of Troys common stock for each share of Kline...
-
Troy Company notified Kline Companys shareholders that it was interested in purchasing controlling ownership of Kline and offered to exchange one share of Troys common stock for each share of Kline...
-
One company may acquire another for a number of different reasons. The acquisition often has a significant impact on the financial statements. In 2005, 3M Corporation acquired CUNO Incorporated....
-
Do you think the 2010 Arizona immigration law was a good idea or not? Should states enforce federal immigration laws when federal authorities wish not to intervene?
-
Impartial, industry accepted, third-party media audit companies are used to validate audiences beyond what each media can self-report. Audience numbers (reported in impressions, ratings, traffic,...
-
Responsibility in many of these areas is facilitated when sex takes place within the context of an ongoing relationship. In that sense, sexual responsibility is a matter of values. Is responsible sex...
Study smarter with the SolutionInn App