Business
Intermediate Accounting
On June 18, 2021, Jamie Banfied Inc. signed a contract

On June 18, 2021, Jamie Banfied Inc. signed a contract to sell machinery for 100,000 (inventoried cost

Question:

On June 18, 2021, Jamie Banfied Inc. signed a contract to sell machinery for €100,000 (inventoried cost C$110,000) for delivery on August 12, 2021. Terms of the sale were COD (cash on delivery). Jamie, which has a June 30 year-end, entered into a forward agreement to sell €100,000 on August 12 to mitigate its foreign exchange risk. Jamie designated the forward a fair value hedge. Pertinent exchange rates follow:

Required:

Record the required journal entries for June 18, June 30, and August 12 using the net method. If no entries are required, state “no entry required” and indicate why.

Transcribed Image Text:

Date June 18, 2021 June 30, 2021 August 12, 2021 Spot rate C$ per €1 1.300 1.310 1.290 Forward rate for delivery on August 12, 2021, C$ per €1 1.305 1.310 1.290

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (4 reviews)

June 18 2021 Debit Accounts Receivable EUR 100000 Credit Revenue EUR 100000 Debit Forward Exchange C...View the full answer

Answered By

SHINKI JALHOTRA

I have worked with other sites like Course Hero as a tutor and I have great knowledge on IT skills.

0.00 0 Reviews 10+ Question Solved

Related Book For answer-question

Intermediate Accounting Volume 2

ISBN: 9780135220498

4th Edition

Authors: Kin Lo, George Fisher

See More Books

Question Posted: Nov 01, 2022 04:18 AM

See More Questions

Students also viewed these Business questions

On September 7, 20X5, Labrador Limited signed a contract to buy equipment from a US manufacturer. The price of the equipment was US$ 500,000. On the same date, Labrador entered into a forward...
On July 1, 2006, Sweetman Company signed a contract to lease space in a building for 15 years. The lease contract calls for annual (prepaid) rental payments of $70,000 on each July 1 throughout the...
On July 1, 2008, Falk Company signed a contract to lease space in a building for 15 years. The lease con-tract calls for annual (prepaid) rental payments of $80,000 on each July 1 throughout the life...
8. Explain how electric forces are like gravitation forces and how they differ.
A random sample of 250 observations is taken from population A, which has 30% of its population living in poverty: A = .3. A second random sample of size 350 is taken independently taken from...
Alyssa opened a retirement account with 7.25% APR in the year 2000. Her initial deposit was $13,500. How much will the account be worth in 2025 if interest compounds monthly? How much more would she...
Consider the following cash flow profile and assume MARR is 10 percent/year. a. What does Descartes' rule of signs tell us about the IRR(s) of this project? b. What does Norstrom's criterion tell us...
Bumblebee Company estimates that 300,000 direct labor hours will be worked during the coming year, 2017, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost...
You are the owner of Poptastic. For the past few years, to help supplement your familys income, you have sold premium, homemade popsicles from your food truck and a few local businesses in Pensacola,...
Create a class entertainment consisting of the following data members: Title Air Date i.e. Release Date Genre Type (i.e. Movie, TV Show) Runtime Country Actors Rating. Follow the instructions...
a. What information does EPS communicate to investors? b. Describe the difference between basic and diluted EPS. c. What are potential ordinary shares? d. Provide three examples of potential ordinary...
Refer to P14A-47 above. Assume that Aaron designated the forward as a cash flow hedge. Required: Record the required journal entries for December 1, December 31, and February 2, using the net method....
Discuss how you would lead multi-disciplined projects that span a number of departments; relate this to a project you are familiar with.
For each of the following, decide whether you agree or disagree and explain your answer: a. A firm earning positive profits in the short run always has an incentive to increase its scale of operation...
In addition to gambling, Las Vegas is famous for its live production shows. Close to 100 shows are performed at various venues across the city on any given day, and many of the shows are...
Consider the following costs of owning and operating a car. An $18,000 Fiat 500 Pop financed over 60 months at 4 percent interest means a monthly payment of $331.50. Insurance costs $120 a month...
What kind of benchmarks do you think were used in the pricing of the Kindle when it was first brought to market?
Some have argued that even if long-run AC curves do eventually slope up, we would not likely see many firms operating at this size. Why not?
Neglecting air resistance, could a satellite be put into orbit in a circular tunnel beneath Earth's surface? Discuss.
Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevelands outstanding stock. No excess amortization resulted from these...
Upland Limited borrowed $40,000 on November 1, 2020, by signing a $40,000, three-month, 9% note. Prepare Upland's November 1, 2020 entry; the December 31, 2020 annual adjusting entry; and the...
Diagnostics Corp. follows IFRS and sells its products in expensive, reusable containers that can be tracked. The customer is charged a deposit for each container that is delivered and receives a...
City Goods Limited (CG) is a sports clothing and equipment retailer that has a chain of 10 stores across Canada. You have just been hired as the new controller for the company. You are currently...
Can you find a conflict/discrepancy between the Oregon Board of Marriage and Family Therapy laws for MFT's and the AAMFT Code of Ethics, in regards to confidentiality?
a Divorce Complaint a divorce decree. A portion of your grade for the project will be based on your work here and your assessment of yourself and your classmates, concerning your teamwork skills. At...
How can data analytics and predictive modeling be integrated into change management processes to anticipate potential roadblocks, assess the impact of change initiatives, and optimize decision-making?

Jasyn And The Astronauts Under The Ice Skies - ISBN: 1916644015 - Free Book

Study smarter with the SolutionInn App