Reference no: EM133053671
Question - On October 1st 2021, the Solo Company of Collierville purhcased a Millenium Falcon Spaceship from the Lando Company of Paris for 200,000 Euros when the Euro was worth $1.10.
Payment is to be made April 15th 2022
Solo prepares quarterly reports (March, June, September, December)
On December 31st the Euro was worth $1.11
On March 31st 2021 the Euro was worth $1.15
On April 15th Solo paid Lando when the Euro was worth $1.13
REQUIRED -
A) Make the journal entries required by Solo in connection with the purchase and payment of the Millenium Falcon.
B) Discuss (just a few sentences) how Solo's bookkeeping (and financial statements) would have been different if they had entered into a forward contract on October 3rd to buy 200,000 Euros at $1.12 with delivery on April 15th.