On August 25, 2020, Beta Inc. entered into a forward contract to buy 25,000 Krubles (KRB) for
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Question:
On August 25, 2020, Beta Inc. entered into a forward contract to buy 25,000 Krubles (KRB) for $ 3,800 Canadian (CAD) on September 5, 2020. On August 31, 2020, 25,000 KRB can be purchased for $ 3,500 CAD. On September 5, Beta settles the contract but does NOT take delivery of the KRB.
Required
- The entry to record the change in value of the contract on August 31, 2020 is
- On September 5, 2020, the KRB is trading at $ 0.15 CAD. The entry to record the settlement of the contract is
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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