Show all journal entries and memoranda

Assignment Help Accounting Basics
Reference no: EM132600261

Question - On November 1, 2020 ABC Company (ABC), the U.S. based company forecasts the purchase of goods from a foreign supplier for 100,000 yuan. ABC expects to receive the goods on April 20, 2021, and make immediate payment. On November 1, 2020, ABC enters into a six-month forward contract to buy 100,000 yuan. The company properly designates the forward contract as a cash flow hedge of a forecasted foreign currency transaction. Forward points are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis over the life of the contract. The following U.S. dollar ? Yuan exchange rates apply:

Date

Spot Rate

Forward Rate to April 30, 2021

November 1, 2020

$0.21

$0.195

December 31, 2020

$0.19

$0.170

April 30, 2021

$0.18

N/A

As expected, ABC receives the goods from the supplier on April 30, 2021 and pays 100,000 yuan immediately. ABC sells the imported goods in the local market in May 2021.

Required - Show all journal entries and memoranda related to the foreign currency forward contract, purchase, and sale from November 2020 to May 2021.

Reference no: EM132600261

Questions Cloud

Calculate Lois net pay and following the steps in payroll : Lois works for Marian Transport in Québec and is paid $2,632.33 semi-monthly. Calculate Lois net pay and following the steps in payroll
What is T Adams taxable benefit on the loan : T. Adams commenced employment at Moana Sales Ltd. on February 1, 2019. What is T. Adams' taxable benefit on the above loan for 2019
Create logical system diagram with software : Create a logical system diagram with a software of your choice showing possible internal connections as well as those between the site and potential customers
What style employed in written communication : Explain why you chose the specific channel you used for the written communication. Explain what style you employed in your written communication
Show all journal entries and memoranda : Show all journal entries and memoranda related to the foreign currency forward contract, purchase, and sale from November 2020 to May 2021
Strategic importance of cloud computing in business : Strategic importance of cloud computing in business organizations, Big data and its business impacts, Managerial issues of a networked organization
Examine alexa skill in ordering drinks from starbucks : How does it interact with smart home devices? Alexa is now connected to smart home devices such as thermostats and microwaves.
Research and develop physical security plan : Conduct some research and develop a Physical Security Plan for a new IT Company Located at in the Capital of the US State which you live.
What is meant by material price variance : Question - What is meant by material price variance and material quantity variance? why is it calculated? Provide examples of each

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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