Brody Company sold interior decoration material to Jessica Company for 450,000 on December 1, 2019, with...

 

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Brody Company sold interior decoration material to Jessica Company for €450,000 on December 1, 2019, with payment due on February 28, 2020. Additionally, on December 1, Brody entered a 90-day forward contract to sell €450,000. The forward contract was acquired to manage the exposed net asset position in Euro, but it was not designated as a hedge. The relevant direct exchange rates were: SPOT FORWARD 12/1/2019 $ 12/31/2019 $ 1.17 (90 days) 1.13 (60 days) 1.10 $ 1.15 $ 2/28/2020 $ 1.11 REQUIRED: ANSWER THE FOLLOWING QUESTIONS (2 POINTS EACH) RELATED TO THE JOURNAL ENTRIES RECORDED BY BRODY СOMPANY: NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. The journal entry on 12/01/19 to record the sale to the foreign customer would include: A DEBIT TO FC RECEIVABLE FROM CUSTOMER (e) IN THE AMOUNT OF The journal entry on 12/01/19 to record the entry into the forward contract would include: A CREDIT TO FC DOLLARS PAYABLE TO FX BROKER IN THE AMOUNT OF: A The journal entry on 12/31/19 to record the revaluation of the FC Receivable from Customer would include: A CREDIT TO FOREIGN CURRENCY TRANSACTION GAIN IN THE AMOUNT OF: The journal entry on 12/31/19 to record the revaluation of the FC Payable to FX Broker would include: A CREDIT TO FOREIGN CURRENCY TRANSACTION GAIN IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: AN ASSET FOR FX CONTRACT (NET) IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: AN ASSET FOR FC RECEVABLE FROM CUSTOMER IN THE AMOUNT OF The journal entry on 02/28/20 to record the revaluation of the FC Receivable from Customer would include: A DEBIT TO FOREIGN CURRENCY TRANSACTION LOSS IN THE AMOUNT OF: The journal entry on 02/28/20 to record the revaluation of the FC Payable to FX Broker would include: A CREDIT TO FOREIGN CURRENCY TRANSACTION GAIN IN THE AMOUNT OF: The journal entry on 02/28/20 to record the settlement of the FC Receivable from Customer would include: A DEBIT TO FOREIGN CURRENCY UNITS (€) IN THE AMOUNT OF: The journal entry on 02/28/20 to record the settlement of the US Dollars Receivable from FX Broker would include: A DEBIT TO CASH IN THE AMOUNT OF: Brody Company sold interior decoration material to Jessica Company for €450,000 on December 1, 2019, with payment due on February 28, 2020. Additionally, on December 1, Brody entered a 90-day forward contract to sell €450,000. The forward contract was acquired to manage the exposed net asset position in Euro, but it was not designated as a hedge. The relevant direct exchange rates were: SPOT FORWARD 12/1/2019 $ 12/31/2019 $ 1.17 (90 days) 1.13 (60 days) 1.10 $ 1.15 $ 2/28/2020 $ 1.11 REQUIRED: ANSWER THE FOLLOWING QUESTIONS (2 POINTS EACH) RELATED TO THE JOURNAL ENTRIES RECORDED BY BRODY СOMPANY: NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. The journal entry on 12/01/19 to record the sale to the foreign customer would include: A DEBIT TO FC RECEIVABLE FROM CUSTOMER (e) IN THE AMOUNT OF The journal entry on 12/01/19 to record the entry into the forward contract would include: A CREDIT TO FC DOLLARS PAYABLE TO FX BROKER IN THE AMOUNT OF: A The journal entry on 12/31/19 to record the revaluation of the FC Receivable from Customer would include: A CREDIT TO FOREIGN CURRENCY TRANSACTION GAIN IN THE AMOUNT OF: The journal entry on 12/31/19 to record the revaluation of the FC Payable to FX Broker would include: A CREDIT TO FOREIGN CURRENCY TRANSACTION GAIN IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: AN ASSET FOR FX CONTRACT (NET) IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: AN ASSET FOR FC RECEVABLE FROM CUSTOMER IN THE AMOUNT OF The journal entry on 02/28/20 to record the revaluation of the FC Receivable from Customer would include: A DEBIT TO FOREIGN CURRENCY TRANSACTION LOSS IN THE AMOUNT OF: The journal entry on 02/28/20 to record the revaluation of the FC Payable to FX Broker would include: A CREDIT TO FOREIGN CURRENCY TRANSACTION GAIN IN THE AMOUNT OF: The journal entry on 02/28/20 to record the settlement of the FC Receivable from Customer would include: A DEBIT TO FOREIGN CURRENCY UNITS (€) IN THE AMOUNT OF: The journal entry on 02/28/20 to record the settlement of the US Dollars Receivable from FX Broker would include: A DEBIT TO CASH IN THE AMOUNT OF:

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