At what amount should the payable be carried on primo books

Assignment Help Accounting Basics
Reference no: EM133021671

Question - Primo Inc., a U.S. company, ordered parts costing 100,000 rupee from a foreign supplier on July 7 when the spot rate was $.025 per rupee.

A one-month forward contract was signed on that date to purchase 100,000 rupee at a rate of $.027.

The forward contract is properly designated as a fair value hedge of the 100,000 rupee firm commitment.

On August 7, when the parts are received, the spot rate is $.028. At what amount should the payable be carried on Primo's books?

Reference no: EM133021671

Questions Cloud

How much per half year in coupon payments : A 10-year coupon bond with face value of $500,000 and a semi-annual coupon rate of 6% p.a. pays how much per half year in coupon payments
Explain the concepts of presentation currency : Explain the concepts of Local Currency, Functional Currency and Presentation Currency with suitable examples
Find the new drafts : Centre of flotation is 3 m aft of amidships. Find the new drafts if a weight of 5 tonnes already on board is shifted aft through a distance of 60 metres
What the value of this swap to the party paying : The six-month LIBOR rate was 5.3% per annum (compounded semi-annually) two months ago. What the value of this swap to the party paying the fixed rate
At what amount should the payable be carried on primo books : On August 7, when the parts are received, the spot rate is $.028. At what amount should the payable be carried on Primo's books
What is the amount of the non-controlling interest : In December 2015, National Ltd paid a $20,000 dividend. What is the amount of the non-controlling interest in National Ltd as at 30 June 2016
What are the total variable costs : Asco Company has a relevant range of production between 15,000 and 30,000 units. If 18,000 units are produced, what are the total variable costs
What is the present value of the cost of leasing : What is the present value of the cost of leasing if the lease payment are an annuity due, so the first payment comes immediately
What are the net operating cash flows in years : The sprayer's base price is $1,030,000, and it would cost another $18,000 to install it. What are the net operating cash flows in Years 1, 2, and 3

Reviews

Write a Review

Accounting Basics Questions & Answers

  One company purchases all of the outstanding shares of

one company purchases all of the outstanding shares of another company. the acquiring company incurs the following

  Explain the impact of the best practices you selected

Explain the impact of the best practices you selected on the reporting process. Describe how the best practices align with the XBRL application.

  Discuss under what theories you might exclude amount

Discuss under what theories you might exclude this amount from V's gross income

  Projected benefit obligation

Calculate each of the following amounts as of both December 31, 2011, and December 31, 2012:

  Compute predicted operating income for procter and gamble

Assume that Procter & Gamble had a 10% increase in sales in 2007. Compute the predicted 2007 operating income for Procter & Gamble and its percentage increase.

  Question 1 the following information is available from the

question 1. the following information is available from the comparative balance sheets and related income statement of

  Discuss the types of variance reporting for internal users

Discuss the types of variance reporting for internal users. Discuss how variance analysis is used in your current or previous corporation

  Monthly debt service payment

What is the monthly debt service payment on Marco's loan if Enrique lends him $15,000 for four years at 8% interest?

  Compute the total cost to Goodson of employing Gonzales

B. F. Goodson employs Eduardo Gonzales at a salary of $46,000 a year. Compute the total cost to Goodson of employing Gonzales

  Learned about the time value of money to analyze

Tom and Tricia are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then star..

  Cypress oil companys december 31 2013 balance sheet listed

cypress oil companys december 31 2013 balance sheet listed 645000 of notes receivable and 16000 of interest receivable

  Which items is not presented under the equity section

Which items is not presented under the equity section of the statement of financial position? One element of the objective of financial reporting is to provide

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd