Prepare journal entries for speculative forward contract

Assignment Help Financial Accounting
Reference no: EM133151364

Question - On December 1, Year 1, Triaxal Incorporation enters into a forward contract to sell one million Philippines pesos (PP) to its bank in exchange for Canadian dollars on March 1, Year 2, at the market rate for a 90-day forward contract of PP1=$0.0227. On December 31, Year 1, Triaxal's year-end, the 60-day forward rate to sell Philippines pesos on March 1 is quoted at PP1=$0.0222. On March 1, Year 2, the currencies are exchanged when the spot rate is PP1=$0.0220.

Required - Prepare journal entries for speculative forward contract under Gross Method and Net Method?

Reference no: EM133151364

Questions Cloud

How much should be credited to share premium : Assuming that the convertible bonds were converted on January 1, 2019, how much should be credited to Share Premium from the equity conversion
Database design-understanding entity relationship diagram : You have been asked to create the logical data model for the Golden Eagle Wholesale Golf Distributors.
Explain fixed and flexible budgeting : Explain fixed and flexible budgeting. Provide an example of budgeting for three consecutive periods in which safety margin is included for flexibility.
Calculate the proceeds from issuance : Calculate the proceeds from issuance if the yield rate is 5% and the bond is issued on 1 August 20X4, still with a maturity date of 31 July 2012
Prepare journal entries for speculative forward contract : On March 1, Year 2, the currencies are exchanged when the spot rate is PP1=$0.0220. Prepare journal entries for speculative forward contract
Why would alexis be hesitant to make such a change : Turner Container Company is suffering declining sales of its principal product, Why would Alexis be hesitant to make such a change
Employee of arabella advisors : John Winthrop is an employee of Arabella Advisors. He recently submitted an expense report, and it was approved by his supervisor.
Describes manner in which tackett company report contract : Which of the following correctly describes the manner in which Tackett Company will report the forward contract on its December 31, Year 1, balance sheet
Consulting services to couples contemplating marriage : Your client, Barbara, has just formed a new corporation that provides consulting services to couples contemplating marriage.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What should be reported as loss on inventory write down

Purchase returns 200,000. Under the lower of cost or NRV, what should be reported as loss on inventory write down for the year?

  Prepare the owner equity section of the balance sheet

Assume one year later (2019) the company KY Jeweller's Ltd, Prepare the owner's equity section of the balance sheet based on the info.

  What adjustment should be made to xyz books

At December 31, 2020, what adjustment(s), if any, should be made to XYZ's books? XYZ Manufacturing ("XYZ") has a December 31, 2020 year-end.

  Calculate the NPV of the merger

Calculate the NPV of the merger depending on the assumptions as presented stating whether should be approved on wealth creation grounds

  Direct materials cost-conversion cost per equivalent unit

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 64,000 were in process in the production department at the beginnin..

  Management science technique

Who has a problem in this situation...Peterson Trucking or Lodan's Food? What kind of problem are they having? What Management Science Technique would be best to use towards solving the problem?

  Make the appropriate journal entry to record the transaction

Make the appropriate journal entry to record the transaction. Acquired merchandise inventory costing $30,000 on January 21 with payment of $16,000 in cash

  What is the carrying value of notes payable on December

Courageous Company acquired an equipment with a cash price of P350,000 for P400,000. What is the carrying value of notes payable on December

  Essay on role of capital market for substainability

BBAC502 - Assignment - Write a 1,500-word argumentative essay ON ROLE OF CAPITAL MARKET FOR SUBSTAINABILITY OR SUBTAINABLE DEVELPOMENT. and link it in Australian Accounting context.

  How to calculate the percentage changes in eps

Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued. Also calculate the percentage changes in EPS

  How much revenue would be shown on the company

Given the above information how much revenue would be shown on the Company's January to December 2021 Income Statement?

  Calculate the amount of cash dividends paid

Calculate the amount of cash dividends paid during 2012. Calculate the depreciation expense incurred during 2012. Prepare a statement of retained earnings for the year ended December 31, 2012.

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