What amount of foreign currency transaction gain

Assignment Help Accounting Basics
Reference no: EM133166804

Question - On December 12, 2013, Winning Co. entered into a forward exchange contract to purchase 225, 000 euros in 90 days. The relevant exchange rates are as follows:


Spot Rate (pesos)

Forward Rate (for March 12, 2014)

November 30, 2013

0.57

P0.59

December 12, 2013

0.58

0.60

December 31, 2013

0.62

0.63

Required -

1. At December 31, 2013, what amount of foreign currency transaction loss from the hedge item should Winning include in profit or loss?

2. At December 31, 2013, what amount of foreign currency transaction gain from this forward contract should Winning include in profit or loss?

Reference no: EM133166804

Questions Cloud

Production orientation and sales orientatioin : Production orientation: a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace.
What is the total amount of period expenses reflected : Based on the cost data, what is the total amount of period expenses reflected in the company's income statement for the quarter ended September 30
Assignment on women in film : Q1. Key aspects of coming- of - age- films "What other choices does a person have?" In their own ways, both Pariah and Persepolis explore this as well.
What is best platform to promote your blog : What is the best platform to promote your blog and why? Thinking about your group's selected blog, would you say it was successful?
What amount of foreign currency transaction gain : At December 31, 2013, what amount of foreign currency transaction gain from this forward contract should Winning include in profit or loss
Discuss notion that firms should stop doing business : Discuss the notion that firms should stop doing business with customers who constantly generate losses versus the notion that the customer is always right.
Compute the net present value of the proposed investment : Compute the net present value of the proposed investment in the robot. Based on these data, would you recommend that the robot be purchased? Explain
Explain the advantage and disadvantage of debt : Companies raised capital through several different sources: Explain the Advantage and Disadvantage of Debt
What does unit of measure mean : What does "unit of measure" mean in QuickBooks and where in QuickBooks would you find this item other than the help

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