US Mill, Inc. sold merchandise to Jang Ltd. for W25bn on October 1, 2014. The billing...
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US Mill, Inc. sold merchandise to Jang Ltd. for W25bn on October 1, 2014. The billing date is on October 1, 2014, and payable in 120 days, on January 30, 2015. Mill decided to enter a forward contract to deliver W25bn to its exchange broker in 180 days. No net settlement was allowed for the contract. Assume an annual interest rate of 12 percent. Selected exchange rates for the Korean won are as follows: Oct 1, 2014 Dec 31, 2014 Jan 30, 2015 Spot rate 30-day forward rate 90-day forward rate 120-day forward rate S0.00096 $0.00095 S0.00094 $0.00094 $0.00094 $0.00093 $0.00092 $0.00091 S0.00092 S0.00093 S0.00091 S0.00090 REQUIRED: Prepare all necessary journal entries and adjusting entries to account for the transaction above. US Mill, Inc. sold merchandise to Jang Ltd. for W25bn on October 1, 2014. The billing date is on October 1, 2014, and payable in 120 days, on January 30, 2015. Mill decided to enter a forward contract to deliver W25bn to its exchange broker in 180 days. No net settlement was allowed for the contract. Assume an annual interest rate of 12 percent. Selected exchange rates for the Korean won are as follows: Oct 1, 2014 Dec 31, 2014 Jan 30, 2015 Spot rate 30-day forward rate 90-day forward rate 120-day forward rate S0.00096 $0.00095 S0.00094 $0.00094 $0.00094 $0.00093 $0.00092 $0.00091 S0.00092 S0.00093 S0.00091 S0.00090 REQUIRED: Prepare all necessary journal entries and adjusting entries to account for the transaction above.
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Oct 1 2014 Account Receivable 24000000 Sales 24000000 ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
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