Solution-Prepare all necessary journal entries made by the

Prepare all necessary journal entries made by the company

Assignment Help Accounting Basics

Reference no: EM132080468

Question - On July 1, 2015 the West Company purchased a 1,000,000 Pound Sterling CD from the Kardashian Bank of London. This 10% 3 year CD pays interest on June30. Additional information is as follows:

July 1, 2015 $1.85 = 1 pound sterling

December 31, 2015 $1.99 = 1 pound sterling

June 30, 2016 $1.88 = 1 pound sterling

December 31, 2016 $2.02 = 1 pound sterling

June 30, 2017 $2.05 = 1 pound sterling

December 31, 2017 $2.07 = 1 pound sterling

June 30, 2018 $2.00 = 1 pound sterling

Required -

a) Prepare all necessary journal entries made by the West Company with respect to its investment in the Kardashian CD. Hint: don't forget adjusting entries at the end of each year.

b) How much income or loss does West show in 2015, 2016, 2017 and 2018 due to its investment in Kardashian?

c) If West had purchased a forward contract on July 3rd 2015 to sell the 1 million pound sterling for $1.99 how would the income or loss of West have been different in 2015, 2016, 2017, 2018?

Reference no: EM132080468

Questions Cloud

Speech holds your attention and what numbs your senses : How did you handle the situation? What style of speech holds your attention and what numbs your senses?

Compare three hr information systems : Compare three HR Information Systems. These systems can be proprietary, open source, or a combination of both. Create a Table of Information to display.

Formulate policy for making hiring and promotional decisions : HRM 510 Formulate a policy for making both the hiring and promotional decisions related to the job opportunity. Specify the major challenges and potential.

How might the size of theater affect the actors performing : How might the size of a theater affect the actors performing in it? How about the audience watching?

Prepare all necessary journal entries made by the company : Prepare all necessary journal entries made by the West Company with respect to its investment in the Kardashian CD

Difference between industrial trade fairs and trade centers : What is the difference between industrial trade fairs and trade centers? What benefits do both offer from an international marketing perspective?

Determine one learning function from the activity : Select one (1) work-related activity in which you have participated (either a successful or failed performance), and decide whether or not debriefing.

Describe roles and responsibilities of the administration : Describe the roles and responsibilities of the administration in each department of your chosen facilities.

Discussed in the example about street marketing : What do you think about the methods used by Sony to promote its new camera phone as discussed in the example about street marketing?

User Account

All Pages

Prepare all necessary journal entries made by the company

Reference no: EM132080468

Reference no: EM132080468

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT