Question: Problem III: (Forecasted Transaction) Everything remains exactly the same as in Problem II except that this is a forecasted transaction. Instructions : Prepare all journal

Problem III: (Forecasted Transaction) Everything remains exactly the same as in Problem II except that this is a forecasted transaction. Instructions: Prepare all journal entries relative to the above on the following dates:

November 1, 2019. 2. Year-end adjustments on December 31, 2019. 3. March 1, 2020. (Include all adjustments related to the forward contract)

Problem II: (Foreign Currency Commitment) Cedar Corporation entered into a contract on November 1, 2019 to sell two machines to International Company for 1,000,000 foreign currency units (FCU). The machines were to be delivered and the amount collected on March 1, 2020. In order to hedge its commitment, Cedar entered, on November 1, 2019, into a forward contract to sell 1,000,000 FCU on March 1, 2020. The forward contract met all conditions for hedging a foreign currency commitment. Selected exchange rates for FCU at various dates were as follows:

Date Spot Rate

11/1/2019

12/31/2019

Forward Rate

(Delivery on 3/1/2020) $0.661

$0.687

$0.662 $0.686 $0.675

3/1/2020 Instructions: Prepare all journal entries relative to the above on the following dates:

November 1, 2019. 2. Year-end adjustments on December 31, 2019. 3. March 1, 2020. (Include all adjustments related to the forward contract)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

need help with this problem. not sure how to start. problem 4 need help with. thank you 2. What if the spot rene in 9 15/2020 was 37 3721 112220161 peran = 51.555. Problem III: ("Forecasted"...

(Forecasted Transaction) Everything remains exactly the same as in Problem II except that this is a forecasted transaction. Instructions: Prepare all journal entries relative to the above on the...

Answer only number 4 Problem I: On 10/17/2020, Hector company (which has a 12/31 year-end) sold to a Canadian firm inventory for C$100,000. Payment is due in 90 days. Concurrently the company entered...

Problem I: On 10/17/2020, Hector company (which has a 12/31 year-end) sold to a Canadian firm inventory for C$100,000. Payment is due in 90 days. Concurrently the company entered into a forward...

Follow the instructions Problem II: (Firm Currency Commitment) Susan Corporation entered into a contract on November 1, 2020, to purchase equipment from Australia for 200,000 foreign currency units...

Problem III: (Forecasted Transaction) U.S. Corporation planned on November 1, 2017 to sell two machines to International Company, for 1,000,000 foreign currency units (FCU). The machines were to be...

1) 2) 3) mbers File Edit Insert Table Organize Format Arrange View Share Window 125% E8-3 E8-5 E8-8 E8-10 E8-12 See Problem E8-8 General Joumal Date Account Titles 12/31/21 Deblt Credit 9% times $90K...

Unless noted otherwise, all dollar figures are in millions of U.S. dollars. Please round to millions of U.S. dollars (SXX million). Assume a 20% tax rate (it bounces around a little, but assume 20%)....

I have part 1 already answered which I will provide below, I just need part two answered now. Thank you so much for your help Part I Maple Company had the following export and import transactions...

What is posting?

1. A business issued a 45-day, 4% note for $240,000 to a creditor on account.Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity,...

0 Multiple Choice 1 point From the study of behavioral finance, we have learned that limited attention Blas can epplain why minority groups face frictions in accessing financlal resources. True False

Identify someone you think is an excellent public speaker. List at least five qualities that this person possesses that make him or her an effective speaker. (Objectives 1, 2, and 3)

What advice would you give to a coworker who declines invitations to speak to professional and community groups because he or she is too scared? (Objective 6)

Teamwork. Form groups of four to five students. Have each person in the group speak for one minute on one of the following topics (no two persons in the group should speak on the same topic): a. Ways...