User Account

All Pages

What is the dollar value of the outstanding pound receivable

Assignment Help Accounting Basics
Reference no: EM133004195

Question - ABC Ltd. (ABC), an Australian company, sells products to a customer in the United Kingdom on 1 October 20x1 with payment of £200,000 to be received on 1 April 20x2. ABC enters into a forward contract on 1 October 20x1 to sell £200,000 on 1 April 20x2. Relevant exchange rates between dollar and pound on various dates are as follows:

Where applicable, use 0.95 as the discount factor corresponding to the company's incremental borrowing rate. ABC Ltd. closes its books and prepares financial statements on 31 December each year.

Required (show your calculations) -

A) What is the dollar value of the outstanding pound receivable on 31 December 20x1?

B) What is the change in dollar value of the pound receivable on 1 April 20x2?

C) What is the fair value of the forward contract on 1 October 20x1?

D) What is the fair value of the forward contract on 31 December 20x1?

E) What is the fair value of the forward contract on 1 April 20x2?

F) What is the change in fair value of the forward contract on 1 April 20x2?

Reference no: EM133004195

Questions Cloud

What is the amount of retain earnings : The company target capital structure is 50% debt funded and 50% equity funded. The cost of new and old debt is constant at 8%. What is amount of retain earnings
What the portion of joint production costs : Dark beer 240,000 cases produced; 120,000 cases sold at P 15 each. What the portion of joint production costs assigned to dark beer
Determine the accounting principles gaap : Determine the accounting principles GAAP the foreign and domestic companies use to prepare financial statements
Briefly discuss how the situation will affect overall plan : Briefly discuss how the situation will affect your overall plan for the expected scope and conduct of the audit
What is the dollar value of the outstanding pound receivable : ABC enters into a forward contract on 1 October 20x1 to sell £200,000 on 1 April 20x2. What is the dollar value of the outstanding pound receivable
What the value of the beta of an australian government bond : Using the expectation model of capital asset pricing model, describe and justify what the value of the beta of an Australian government bond should be
Prepare general journal for transaction excluding adjustment : This the new business started in January. Prepare General Journal for transaction excluding Adjustments, will done later
Determine the amount of cash receipts stolen by sales clerk : Cash in bank according to the general ledger 9200. No deposits were in transit on April 30. Determine the amount of cash receipts stolen by the sales clerk
What implications does the existence of this goodwill : What implications does the existence of this goodwill have on Almanzo's valuation process? Is there a reason to be concerned

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much can paula estate claim for a credit for tax

Lou's estate tax was $350,000. How much can Paula's estate claim for a credit for tax on prior transfers

  Prepare journal entries for the conversion of all bonds

Prepare journal entries for the conversion of all bonds to common stock on January 1, 2004, when the market value of common stock was Sh 67 per share

  Provide the entry for the original transaction

A physical count at December 31 revealed that $800 of supplies were still on hand. For each of the above situations, provide the entry for original transaction

  Analyze the relationship of accounts receivable

Analyze the relationship of accounts receivable and sales and compare with relationships for preceding periods

  Discuss what is the maximum deduction for taxes

What is the maximum deduction for taxes on their 2016 return

  Formula for the variance of the prediction error

Battery failures. In five years, 500.000 batteries were put into service at a uniform rate. In that period, 5000 of them failed and were promptly replaced

  Homebeck company issued 100000 bonds payable with a 7

homebeck company issued 100000 bonds payable with a 7 interest rate at a price of 97. the journal entry to record the

  What amount should be reported as premium expense

Number of towels to be distributed as premium next period - 5,000. What amount should be reported as Premium Expense for 2017

  Discuss how should the deferred tax amounts be classified

How should the deferred tax amounts be classified in a classified balance sheet

  What is the under or overapplied manufacturing overhead

Marco Furniture Making Company uses the direct labor hours methodm for applying manufacturing overhead. The overhead application rate for 2008 is P8.60 per.

  Calculate the predetermined overhead allocation rate.

a. Calculate the predetermined overhead allocation rate. b. Calculate the overhead cost applied during the year.c. Determine the amount of over- or underapplied overhead.

  Identify main account of accounts for asx company

The ASX company Bijou Electronics have reported sales problems. Identify the main account or groups of accounts that could be impacted and give reasons

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