Question: Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2013 by Sysco Corporation, the largest foodservice distributor in North America: 1.

Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2013 by Sysco Corporation, the largest foodservice distributor in North America:
1. June 15, 2013: Entered into a firm commitment to purchase frozen pasta entrees from Italy which will be resold in the United States. The invoice price was €4,000,000, and delivery and payment were to be made in 60 days. Concurrently, €4,000,000 was purchased in the forward market for delivery in 60 days at the forward rate of $1.45. The goods were received, payment was made, and the forward contract was settled on August 14, 2013, when the spot rate was $1.43.
September 1, 2013: Canned products priced at 3,000,000 zloty were sold to a food distributor in Po-land when the spot rate was $0.38. Payment was received on November 3, 2013, when the spot rate was $0.36, and the zloty were immediately converted to dollars.
Required
Prepare the 2013 journal entries made by Sysco Corporation relating to the above transactions. Sysco is a calendar year company.

Step by Step Solution

★★★★★

3.33 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

August 14 2013 Exchange loss 80000 Investment in forward contract 80000 To record decline in fair va... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

900-B-A-A-D (787).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Part I Maple Company had the following export and import transactions during 20X5: 1. On March 1, Maple sold goods to a Canadian company for C$30,000, receivable on May 30. The spot rates for marks...

How transparent do sites like Alibaba.com make import-export transactions? To what degree would you worry about fraud? What safeguards would you seek?

Analyzing the Performance of an Import/Export Department William Johnston manages the import/export department of Bush Specialty Products. Because of the complexities of foreign currency transactions...

Question 5 Not complete Marked out of 7.00 Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2013 by Sysco Corporation, the largest...

Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2020 by Sysco Corporation, the largest foodservice distributor in North America: 1....

Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2020 by Sysco Corporation, the largest foodservice distributor in North America:...

need help with what I have gotten incorrect Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2020 by Sysco Corporation, the largest...

Import/Export Transactions and Hedged Commitment The following international transactions were entered into during 2020 by Sysco Corporation, the largest foodservice distributor in North America:...

prepare 2020 journal entries made by Sysco PLEASE BE NEAT with answer and Jamue Required Prepure the journal entries made by Roderick on December 16, 2020, December 31, 2020 15, 2021 nternational...

The following international transactions were entered into during 2013 by Sysco Corporation, the largest foodservice distributor in North America: June 15, 2013: Entered into a firm commitment to...

Given relations R(A,B) and S(B,C,D). The result of natural join of the relations R and S has A. Attributes A, B, c, D B. Only attribute B C. None of the others D. Only two attributes R.B and S.B

Kumar Inc. uses a perpetual inventory system. At January 1, 2011, inventory was $214,000 at both cost and market value. At December 31, 2011, the inventory was $286,000 at cost and $265,000 at market...

Which of the following should not be on a monthly cost control report of adepartment manager? (1) department labor cost; (2) department suppliescost; (3) depreciation cost on department equipment;...

Should the business owner open a remote office? The owner of a thriving business wants to start up an office in a distant city. If she hires someone to manage the new office, she can afford to pay a...

1. Hospital room charges for telephone and television rentals should be classified as: a. Patient service revenues b. Other operating revenues c. Nonoperating gains d. Premium fees 2. A hospital...

A voluntary health and welfare organization summarizes its expenses by function, as follows: Education........ $20,400 Fund-raising...... 11,400 Management and general.. 5,500 Public health.........

there are 3 approaches to solve this. Future Value isnt one of them. any help on what the 3 approaches are? i also need it be solved in excel. Problems in Business Finance 382, Test 1, Q12, Fall 2009...

Calculate the Present Value of Growth Opportunities ( PVGO ) Medtronic is expected to earn $ 8 . 0 2 next year. The company has a discount rate of 1 3 % and is able to reinvest its earnings at an ROE...

The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 29,000 shares of stock outstanding. Market Value Balance Sheet Cash $156,000 Fixed assets 560,010 Equity $716,010...