What foreign exchange gain or loss on forward contract

Assignment Help Managerial Accounting
Reference no: EM132973499

On November 1, 20x9, ReSA Dairy Corp. concluded that the Thailand baht would weaken during the next ix months because of the coup that transpires recently. In hopes of reporting a gain, ReSA entered into a foreign exchange forward for speculation on November 1, 20x9, to sell 1,000,000 baht on April 30, 20y0 at the forward rate.

                         11/1/20x9              12/31/x9           4/30/y0

Spot rate(baht)  P1.190                   1.180                  1.210

Forward rate(baht) 1.199                    1.187                1.210

Problem 1. The December 31, 20x9 profit and loss statement, foreign exchange gain or loss on forward contract amounted to:

Problem 2. On April 30, 20y0, foreign exchange gains or loss on forward contract amounted to (ignoring any discount reversal)

Reference no: EM132973499

Questions Cloud

What is the value of the forward contract at december : What is the value of the forward contract at December 31? Ward Enterprises sells aircraft seat cushions to most major airplane manufacturers.
What is his purchase price : If Giuseppe purchased this bond on 7 May 2018, what is his purchase price. Giuseppe needs to pay tax at rate 24.1% on coupon payments
What december foreign exchange gain on forward contract : What the December 31, 20y0 foreign exchange gain or loss on forward contract to be charged to amounted to? Indoy Company, the parent of the 100% owned Japanese
What is the carrying amount of the note at Audi : The prevailing rate of interest for a note of this type at January 1, 2019 was 10%. What is the carrying amount of the note at Audi
What foreign exchange gain or loss on forward contract : On November 1, 20x9, ReSA Dairy Corp, What the December 31, 20x9 profit and loss statement, foreign exchange gain or loss on forward contract amounted to
How much is the revaluation surplus as of December : On September 1, 2021, the entity sold the machine for 140,000. How much is the revaluation surplus as of December 31, 2019 after revaluation
How important is it for them to classify the centre users : Managers at Clifton leisure centre want to attract more customers. They have improved the gym facilities with updated equipment. They have also hired a new fitn
Explain the effective leadership style : Leadership styles can be inherited or developed over time and with practice. It's more than just a position of power. It is a choice to be a good leader. A lead
Analysis the problem perform a Stakeholders analysis : Using the LogFrame Analysis the problem perform a Stakeholders analysis and a problem tree analysis. Explain the nature of the solutions

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute the yards of fabric that ceasar needs to purchase

The expected yards of fabric needed for sales is 144,000. Compute the yards of fabric that Ceasar needs to purchase

  What is the company total assets turnover

DuPont Analysis Gardial & Son has an ROA of 8%, a 4% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover?

  How much overhead would be assigned to the product a

A company manufactures,Under a traditional costing approach based on direct labour hours, how much overhead would be assigned to the product A?

  Prepare a budgeted balance sheet as of march

Prepare a budgeted income statement for the quarter ended March 31 , 2019. Prepare a budgeted balance sheet as of March 31, 2019.

  Statements of financial accounting standards

Statements of Financial Accounting Standards

  Simid sports-production budget

Near end of 2011, the management of Simid Sports Co., merchandising company, prepared the following estimated balance sheet for December 31, 2011: Simid Sports' single product is bought for $30 per unit and resold for $60 per unit.

  Compute sales needed to achieve the required target profit

Fixed expenses = $50,000, and variable expenses = 40% of sales. Compute Sales needed to achieve the required target profit

  Compute the net investment in the new equipment

The cost is deductible for tax purposes in the year incurred. Tax rate is 30%. Compute the net investment in the new equipment for decision-making purposes.

  Compute the firm price-earnings ratio and the price-ebitda

The company's EBITDA was $6.834 billion and its share price was $22.36. Compute the firm's price-earnings ratio and the price-EBITDA ratio.

  Determine the net income reported by Curwen Inc

Gain on sale of investments 13,200. Determine the net income reported by Curwen Inc. for the year ended December 31

  How many new clients must visit the law firm

Josef Manuel, Determine how many new clients must visit the law firm for the venture to break even during its first year of operations.

  Find how does standard costing work

How activities- based costing actually solved the weakness in the costing system.How does standard costing work that makes it different from the other system

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