(Foreign Currency Commitment) U.S. Corporation entered into a contract on November 1, 2017 to sell two...

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(Foreign Currency Commitment) U.S. Corporation entered into a contract on November 1, 2017 to sell two machines to International Company for 750,000 foreign currency units (FCU). The machines were to be delivered and the amount collected on March 1, 2018. In order to hedge its commitment, U.S. entered, on November 1, 2017, into a forward contract to sell 750,000 FCU on March 1, 2018. The forward contract met all conditions for hedging a foreign currency commitment. Selected exchange rates for FCU at various dates were as follows: Forward Rate Date Spot Rate (Delivery on 3/1/2018) 11/1/2017 $0.9540 S0.9535 12/31/2017 $0.9452 $0.9515 3/1/2018 $0.9626 Required: Prepare all journal entries relative to the above on the following dates: 1. November 1, 2017. 2. Year-end adjustments on December 31, 2017. 3. March 1, 2018. (Include all adjustments related to the forward contract) (Foreign Currency Commitment) U.S. Corporation entered into a contract on November 1, 2017 to sell two machines to International Company for 750,000 foreign currency units (FCU). The machines were to be delivered and the amount collected on March 1, 2018. In order to hedge its commitment, U.S. entered, on November 1, 2017, into a forward contract to sell 750,000 FCU on March 1, 2018. The forward contract met all conditions for hedging a foreign currency commitment. Selected exchange rates for FCU at various dates were as follows: Forward Rate Date Spot Rate (Delivery on 3/1/2018) 11/1/2017 $0.9540 S0.9535 12/31/2017 $0.9452 $0.9515 3/1/2018 $0.9626 Required: Prepare all journal entries relative to the above on the following dates: 1. November 1, 2017. 2. Year-end adjustments on December 31, 2017. 3. March 1, 2018. (Include all adjustments related to the forward contract)

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Date Particulars Debit Credit 2017 Nov01 International Compan... View the full answer