Refer to Practice 19-7. Make any necessary journal entry on the shirt companys books on December 31
Question:
Refer to Practice 19-7. Make any necessary journal entry on the shirt company’s books on December 31 of Year 1 in connection with the cotton option contract, assuming that the price of cotton per pound on that date is
(1) $0.52,
(2) $0.30, and
(3) $0.39.
Remember that the cotton option was purchased for $2,500.
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The cotton option is a cash flow hedge 1 Price of cotton 052 Cotton Option Contract 10500 Other Comp...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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