What journal entries Goofy Ltd would have to prepare

Reference no: EM132771307

Question - On November 10, 2017 Goofy Ltd buys some inventory from a French supplier to be paid for in Euros (€) two months later on January 10, 2018. Payment was to be for €125,000. The spot rates for the €1 are as follows:

November 10, 2017, transaction date, spot rate was $1.07/ €1

December 31, 2017 balance date, spot rate was $1.09/€1

January 10, 2018, settlement date, spot rate was $1.05/€1.

Required - If Goofy Ltd does not hedge the transaction, please demonstrate what journal entries Goofy Ltd would have to prepare on the transaction date, balance date and settlement date?

Reference no: EM132771307

Questions Cloud

What did you learn from the article : Find an article in the local newspaper, web news service e.g. CNN, MSNBC, Google, or a weekly newsmagazine e.g. Time, Newsweek or U.S. New World Reports.

How much more does need to invest to get the same amount : How much will a 40-year-old get if he makes a similar investment? How much more does he need to invest to get the same amount?

How much can he withdraw at the beginning of every year : Mr. Rahul has been saving Rs.9,500, The money accumulated will be invested at a rate of 8% p.a. How much can he withdraw at the beginning of every year?

How are protists different to bacteria and viruses : How are protists different to bacteria and viruses?

What journal entries Goofy Ltd would have to prepare : Please demonstrate what journal entries Goofy Ltd would have to prepare on the transaction date, balance date and settlement date

Define why the population is designated as vulnerable : Compare vulnerable populations. Describe an example of one of these groups in the United States or from another country. Explain why the population.

What level of annual earnings must the new project generate : What level of annual earnings (before interest and taxes) must the new project generate in order to meet the company's objective of no change

Created and used to support reporting and dashboarding : Examine how a data warehouse is created and used to support reporting and dashboarding.

How are protists different to bacteria and viruses : How are protists different to bacteria and viruses?

User Account

All Pages