Prepare dated journal entries for fleming

Assignment Help Accounting Basics
Reference no: EM132049664

Question - On June 1, 2014, Fleming Co. sold goods to BFF Ltd. for FC 200,000 and entered into a 90-day forward contract with a financial institution to deliver FC 200,000. Fleming expects to collect payment from BFF in 90 days. Fleming has a July 31 year-end. Selected exchange rates are presented below:

Spot Rate Forward rate to August 30 June 1, 2014 FC1= $1.5717 CAD FC1= $1.5702 CAD July 31, 2014 FC1= $1.5600 CAD FC1= $1.5594 CAD August 30, 2014 FC1= $1.5500 CAD

Required:

a) Prepare dated journal entries for Fleming to reflect the above transactions using the current method. Do not use hedge accounting.

b) Prepare dated journal entries for Fleming to reflect the above transactions using the net method. Do not use hedge accounting.

c) Explain how your journal entry on the settlement date would change if the receivable was hedged.

Reference no: EM132049664

Questions Cloud

Calculate the amount of exchange gain : Calculate amount of exchange gain/loss, if any, that should be reported on Prints Galore 2016 consolidated statement of income under other comprehensive income
What you think role of environmental ethics is in society : Explain what you think the role of environmental ethics is in society. As part of your response, highlight one key technology that you think illustrates.
Find the mean of the frequency distribution with classes : Find the mean of the frequency distribution with classes. Round your answer to the nearest tenth.
Create document that features origina lversion of a passage : For this assignment you will share with your classmates an example of revisions you have made to a passage of your writing. You may choose anything you'd like.
Prepare dated journal entries for fleming : Prepare dated journal entries for Fleming to reflect the above transactions using the current method. Do not use hedge accounting
How many students took 4 days to complete the assignment : 1. How many students took 4 days to complete the assignment? 2. How many students completed the project in 3 days or less?
Find the slope of the linear function in feet per minute : Assume that the airliner's altitude A is a linear function of time t measured in minutes after it begins its descent.
How much cash does the company have : McConnell Corp. has a book value of equity of $13,280. Long-term debt is $8,350. How much cash does the company have
What aspects of intercultural communication does highlight : With respect to the episode of 'All American Muslim' shown in class, discuss what aspects of intercultural communication does it highlight.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Balance sheet total for retained earnings

A for-profit nursing home has beginning-of-period retained earnings of $40,000. Net income for the period totals $75,000 and dividends declared during the period total $15,000. The balance sheet total for retained earnings will be what amount?

  Prepare a production cost report

At April 30, 150,000 units were still in work-in-process inventory. Prepare a production cost report using the weighted-average method

  Prepare the balance sheet after the acquisition

On December 31, Jose SA acquired Carlos SA by issuing 200,000 common shares with a par value of $10. Prepare the balance sheet after the acquisition

  David company produces two types of gears gear a and gear b

david company produces two types of gears gear a and gear b with unit contribution margins of 6 and 8 respectively.

  Determine whether current designs should accepted or not

Prepare an incremental analysis to determine whether Current Designs should accept this special order to produce the coolers

  Urban company manufacturers tables if raw material used

urban company manufacturers tables. if raw material used was 80000 and raw material inventory at the beginning and

  Preparing and analyzing an annual report for a company

This problem belongs to Accounting and it is about collecting, preparing and analyzing an annual report for a company listed on the Australian Securities Exchange. For this purpose, the data from Billabong International Ltd has been taken

  Prepare a cash receipts budget for orlo for january

Prepare a cash receipts budget for Orlo for January through June of 2012. You may fill in the blue area with the projected sales if it will help you

  Should report interest payable at december

In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2013, in the amount of?

  Power of words to ennoble or condemn

What is meant by conditioned in this statement: "people in Western cultures do not realize the extent to which their racial attitudes have been conditioned since early childhood by the power of words to ennoble or condemn, augment or detract, glo..

  Which method is preferred by the fasb

Contrast the advantages and disadvantages of the direct and indirect methods of preparing the statement of cash flows. Are both methods acceptable? Which method is preferred by the FASB? Which method is more popular?

  Construct the amortization schedule for this loan

Epitome healthcare has just borrowed 1,000,000 on a five year annual payment term loan at a 15% rate. Construct the amortization schedule for this loan

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