User Account

All Pages

Prepare journal entries for pumped up to record the purchase

Assignment Help Financial Accounting
Reference no: EM132856792

Question - Pumped Up Company purchased equipment from Switzerland for 300,000 francs on December 16, 2017, with payment due on February 14, 2018. On December 16, 2017, Pumped Up also acquired a 60-day forward contract to purchase francs at a forward rate of SFr 1 = $0.67. On December 31, 2017, the forward rate for an exchange on February 14, 2018, is SFr 1 = $0.695. The spot rates were

December 16, 2017 1SFr = $0.68

December 31, 2017 1SFr = $0.75

February 14, 2018 1SFr = $0.70

Assume that the forward contract is not designated as a hedge but is entered into to manage the company's foreign currency-exposed accounts payable.

Requirements -

a) Prepare journal entries for Pumped Up to record the purchase of equipment; all entries associated with the forward contract; the adjusting entries on December 31, 2017; and entries to record the revaluations and payment on February 14, 2018 according to IAS 21.

b) What was the overall effect of these transactions on the income statement?

Reference no: EM132856792

Questions Cloud

What will be the average receivables in fifty days : Suppose a clinic's average receivables are $85,000 and the average daily reimbursement is $2,000. What is the ACP ( average collection period)?
BSBSUS201 Participate in environmentally sustainable work : BSBSUS201 Participate in environmentally sustainable work practices Assignment Help and Solution, Sheldon School of Hospitality - Assessment Writing Service
What is the likelihood of a h2s release per year : A company that owns and operates 123 identical facilities and corporate risk management has identified that 17 releases of hydrogen sulfide have occurred during
Studying can you find in modern society : Thought about the world, and what we valued, but also about ourselves. what elements of what we are studying can you find in modern society?
Prepare journal entries for pumped up to record the purchase : Prepare journal entries for Pumped Up to record the purchase of equipment; all entries associated with the forward contract; the adjusting entries on December
Identifying measures in balanced scorecard : Discuss how a SWOT analysis might be used for identifying measures in a balanced scorecard. What types of questions might you ask?
How many days does take on average for the firm to pay : XYZ Company has annual sales of $612,856. How many days does it take on average for the firm to pay its suppliers? That is, what is the payable period?
Compute the unamortized franchise cost at December : Drama Company, which was organized in 2019, has only one account for all its Intangibles. Compute the unamortized franchise cost at December
Falcon depiction in egyptian art typically represents : Explain how the deity Horus became the king of Egypt and Osiris became king of the underworld. A falcon depiction in Egyptian art typically represents the god

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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