Prepare entries to account for a cash flow hedge involving an option. Industrial Plating Corporation coats manufactured
Question:
On September 10, the company settled the option and on September 15 purchased 100,000 troy ounces of silver on account at $5.33 per ounce. The silver was used in the companys production process over the next three months. In September and October, plating services were provided as follows:
Required
Prepare all necessary entries to account for the above activities through October. Assume that the hedge satisfies all necessary criteria for special hedge accounting.
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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