Question: I need help with Requirement C . I put in all the General Journal entry titles, it's just I need help with each amount for
I need help with Requirement C I put in all the General Journal entry titles, it's just I need help with each amount for the journal entries. Information: Pacifico Company, a USbased importer of beer and wine, purchased cases of Oktoberfeststyle beer from a German supplier for euros. Relevant US dollar exchange rates for the euro are as follows:
Date Spot Rate Forward Rate to October Call Option Premium for October strike price $ August $ $ $ September October spotNA
The company closes its books and prepares thirdquarter financial statements on September Requirement C Information: Assume that the company ordered the beer on August The beer arrived and the company paid for it on October On August the company entered into a twomonth forward contract to purchase euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, and import purchase.
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