The entry on November 1, 20X8, to record the forward contract includes a a. Debit to Foreign

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The entry on November 1, 20X8, to record the forward contract includes a

a. Debit to Foreign Currency Receivable from Exchange Broker, 100,000 renminbi.

b. Debit to Foreign Currency Receivable from Exchange Broker, $12,600.

c. Credit to Premium on Forward Contract, $600.

d. Credit to Dollars Payable to Exchange Broker, $12,600.

Jon-Jan Restaurants purchased green rice, a special variety of rice, from China for 100,000 renminbi on November 1, 20X8. Payment is due on January 30, 20X9. On November 1, 20X8, the company also entered into a 90-day forward contract to purchase 100,000 renminbi. The forward contract is not designated as a hedge. The rates were as follows:

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Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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