Question: Problem 7-25 points Choy Co. purchased rice from China for 150,000 renminbi (r) on Nov. 1, 2015. Payment is due on Jan. 30, 2016. Choy

Problem 7-25 points Choy Co. purchased rice from China for 150,000 renminbi (r) on Nov. 1, 2015. Payment is due on Jan. 30, 2016. Choy also entered into a 90 day forward contract with an exchange broker to purchase 150,000 renmimbi. The rates were as follows: Date Nov. 1, 2015 Dec. 31, 2015 Jan. 30, 2016 Spot Rate $0.120 $0.124 $0.127 Forward Rate $0.126 - 90 days $0.129 - 30 days a) Record all journal entries on the transaction, balance sheet and settlement dates. Show computations. b) What is Choy's overall gain or loss from these transactions? Show computations

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