Shannon Company contracts to sell on September 1, 2022 equipment to a German purchaser. The price of
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Shannon Company contracts to sell on September 1, 2022 equipment to a German purchaser. The price of the equipment is 200,000 and the bill will be settled in Euros. The future transaction is viewed as a firm commitment. Shannon enters into a forward contract to sell the acquired Euros on March 1 at the 180 day forward rate.
| Sep 1 | Dec 31 | March 1 | ||
| Spot | $1.35 | $1.34 | $1.25 | |
| 180 day forward | $1.33 | $1.31 | $1.22 | |
| 60 day forward | $1.32 | $1.28 | $1.23 |
Record the entries needed on September 1.
Record the entries needed at year end, December 31.
Record the entries needed on March 1.
Expert Answer:
ANSWER To record the entries needed on September 1 December 31 and March 1 for Shannon Companys forw... View the full answer
Related Book For 
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
Posted Date:
