X is a Canadian manufacturing company that produces inexpensive personal and laptop computers. During 2022, the...

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X is a Canadian manufacturing company that produces inexpensive personal and laptop computers. During 2022, the company started purchasing most of its components from a supplier in Germany. X's year-end is on December 31. The following transactions took place in 2022:- . On September 1, 2022, X purchased components from its German supplier for 100,000 Euros. On that date, X entered into a forward contract for 100,000 Euros at the 60-day forward rate of 1 Euro = CDN$1.538. The forward contract was designated as a fair value hedge of the amount payable to the German supplier. X settled with the bank and paid its supplier in full on December 1, 2022. . On December 1, 2022, X also shipped a batch of laptop computers to an American client for US$250,000. On this date X entered into a forward contract with the Bank to hedge this transaction when the exchange rate was 1Euro = CDN1.3400. The invoice required that X receive its payment in full by January 31, 2023. X did not hedge this transaction. The dates and exchange rates relevant to these transactions are shown below. Forward rate CDN$1.538 Spot rate September 1, 2022 1 Euro December 1, 2022 1 Euro CDN$1.525 CDN$1.4800 1 Euro 1 Euro CDN$1.4800 December 1, 2022 US$1 = CDN$1.3200 US$1 CDN$1.3400 December 31, 2022 US$1 = CDN$1.2700 US$1 CDN$1.2600 Required: Prepare the 2022 journal entries to record the above transactions. In addition, prepare any adjusting journal entries that you consider necessary. X is a Canadian manufacturing company that produces inexpensive personal and laptop computers. During 2022, the company started purchasing most of its components from a supplier in Germany. X's year-end is on December 31. The following transactions took place in 2022:- . On September 1, 2022, X purchased components from its German supplier for 100,000 Euros. On that date, X entered into a forward contract for 100,000 Euros at the 60-day forward rate of 1 Euro = CDN$1.538. The forward contract was designated as a fair value hedge of the amount payable to the German supplier. X settled with the bank and paid its supplier in full on December 1, 2022. . On December 1, 2022, X also shipped a batch of laptop computers to an American client for US$250,000. On this date X entered into a forward contract with the Bank to hedge this transaction when the exchange rate was 1Euro = CDN1.3400. The invoice required that X receive its payment in full by January 31, 2023. X did not hedge this transaction. The dates and exchange rates relevant to these transactions are shown below. Forward rate CDN$1.538 Spot rate September 1, 2022 1 Euro December 1, 2022 1 Euro CDN$1.525 CDN$1.4800 1 Euro 1 Euro CDN$1.4800 December 1, 2022 US$1 = CDN$1.3200 US$1 CDN$1.3400 December 31, 2022 US$1 = CDN$1.2700 US$1 CDN$1.2600 Required: Prepare the 2022 journal entries to record the above transactions. In addition, prepare any adjusting journal entries that you consider necessary.

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Journal Entries for 2022 September 1 2022 Purchase of components from German supplier and entering ... View the full answer