Brody Company purchased interior decoration material from Jessica Company for 450,000 on December 1, 2019, with...
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Brody Company purchased interior decoration material from Jessica Company for €450,000 on December 1, 2019, with payment due on February 28, 2020. Additionally, on December 1, Brody entered a 90-day forward contract to purchase €450,000. The forward contract was acquired to manage the exposed net liability position in Euro, but it was not designated as a hedge. The relevant direct exchange rates were: SPOT FORWARD 12/1/2019 $ 1.10 $ 1.17 (90 days) 1.13 (60 days) 12/31/2019 $ 1.15 $ 2/28/2020 $ 1.11 The journal entry on 12/31/19 to record the revaluation of the FC Receivable from FX Broker would include: A DEBIT TO FOREIGN CURRENCY TRANSACTION LOSS IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: A LIABILITY FOR FX CONTRACT (NET) IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: A LIABILITY FOR FC PAYABLE TO VENDOR (€) IN THE AMOUNT OF: Brody Company purchased interior decoration material from Jessica Company for €450,000 on December 1, 2019, with payment due on February 28, 2020. Additionally, on December 1, Brody entered a 90-day forward contract to purchase €450,000. The forward contract was acquired to manage the exposed net liability position in Euro, but it was not designated as a hedge. The relevant direct exchange rates were: SPOT FORWARD 12/1/2019 $ 1.10 $ 1.17 (90 days) 1.13 (60 days) 12/31/2019 $ 1.15 $ 2/28/2020 $ 1.11 The journal entry on 12/31/19 to record the revaluation of the FC Receivable from FX Broker would include: A DEBIT TO FOREIGN CURRENCY TRANSACTION LOSS IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: A LIABILITY FOR FX CONTRACT (NET) IN THE AMOUNT OF: The 12/31/19 Balance Sheet would include: A LIABILITY FOR FC PAYABLE TO VENDOR (€) IN THE AMOUNT OF:
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Given are the details of forgien currency transactions with spot and forward rates between Euro and USD It is required to provide answers for the questions made SOLUTION We have Spot rate of USD with ... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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