Co. expects the value of yens to decrease in the next 30 days. Accordingly, on December 15, 20x1, ABC Co. enters into a 30-day Forward contract to sell 4,000,000 yens at the forward rate of P0.47. On December 31, 20x1, the forward rate was P0.485 and by anuary 15, 20x2, the spot rate moved to P0.46. 0) The entry to record the forward contract on December 15, 20x1 includes a. a debit to forward contract for P60,000 b. a credit to forward contract for P60,000 c. a debit to loss on forward contract for P60,000 d none
Q: When is more frequent monitoring of internal controls not required?* When employees are poorly…
A: Internal control refers to the procedures and methods a company uses to ensure its operations are…
Q: E21.2 (LO 1) (Change in Principle-Inventory Methods) Holder-Webb Company began oper- ations on…
A: It involves assigning a value to the inventory on hand for reporting purposes, determining the cost…
Q: Francis Inc.'s stock has a required rate of return of 8.25%, and it sells for $90 per share. The…
A: Required rate of return = 8.25%Selling price = $90 per shareGrowth rate = 5.00%
Q: Discuss 2 similarities and differences of internal controls reporting requirements between public…
A: Similarities in Internal Controls Reporting Requirements:Documentation and Accountability: Both…
Q: Peter's salary (X) is twice the salary of Paul (Y) but half the salary of Mary (Z). Write an…
A: In the given question, average of salary of Paul and Mary is to be calculated in term of salary of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The quantitative measurement of how actual conduct differs from behavior that was intended is known…
Q: No. 101 Cash 104 Short-term investments 126 Supplies 128 Prepaid insurance 167 Equipment 168…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only i.e.…
Q: 1st Q Gross Income 600,000 per Quarter Deductions per 280,000 Quarter W/tax at source 2,000 per…
A: It is the amount of tax a taxpayer is liable to pay on the taxable income earned. The tax liability…
Q: H1. On June 14 Xtreme Sports received a 90-day note payable from Z Skis, instead of a cash payment…
A: Note payable is one of the liability being incurred in business, on which regular interest payments…
Q: Pretzelmania, Incorporated, issues 7%, 15-year bonds with a face amount of $64,000 for $70,216 on…
A: Cash Payment of Interest = Face Value * Stated rate of InterestInterest Expense = Carrying Value *…
Q: ProChem, the produces chemicals for large biotech companies It has the following data for…
A: Variance is defined as the difference between standard and actual costs incurred for that product in…
Q: During the year ended 30 Jun 2020, Ms Ria,, a resident of Australia, has received rents of $41879…
A: Taxable income is an amount of a person's or entity's total income that is subject to government…
Q: Accounting practices in the United States are governed by a set of accounting rules referred to as:…
A: Accounting Concepts and Conventions : There are certain business transactions whose recording…
Q: In the current year, Mary entered in to the following separate independent transactions: a) Mary…
A: A dividend is a distribution of earnings or profits given by a firm to its shareholders. When a firm…
Q: Travel Planners, Incorporated borrowed $5,000 from First State Bank and signed a promissory note.…
A: The business organizations enter the transactions into the journal for the purpose of keeping track…
Q: Managers at Marigold, Inc. were cautiously optimistic about receiving their bonuses at year-end.…
A: Budgeting is the process of making estimates or forecasts for future period. Flexible budget is that…
Q: Indicate the effect of the following event on the company's accounting equation. For each account…
A: A cash dividend is a distribution of money that a corporation pays to its shareholders from its…
Q: Westerville Company reported the following results from last year's operations: Sales Variable…
A: RESIDUAL INCOMEResidual Income is income that one continues to receive after the completion of the…
Q: Net present valde munca The following data are accumulated by Waiola Company in evaluating the…
A: The net present value method is used to evaluate the investment projects. We can evaluate the…
Q: Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the…
A: To update and modify the Accounting Standards Codification (ASC), the Financial Accounting Standards…
Q: Varto Company has 11,000 units of its product in inventory that it produced last year at a cost of…
A: Incremental cost is the cost incurred for the production of additional products. Variable cost…
Q: In 2025, Kingbird Corporation had net cash provided by operating activities of $552,000, net cash…
A: The cash flow statement is part of the financial statements of the company. It is prepared at the…
Q: What role does internal control play in ensuring accurate revenue recognition and preventing fraud?
A: Internal control is the collective term for the methodical actions taken by a company to protect its…
Q: During January, its first month of operations, Crane Company accumulated the following manufacturing…
A: Lets understand the basics..Journal Entries are the record entered into by the company during…
Q: Discuss the perspective to which SATTA turned to regarding the scientific progress of accounting
A: General overview of how accounting has traditionally evolved from a scientific…
Q: How do interim financial statements play a role in assessing a company's performance and financial…
A: Condensed financial reports known as interim financial statements are released by a firm at…
Q: Differentiate between job-order costing and process costing. Under what circumstances might an…
A: Job-order costing and process costing are two distinct methods within cost accounting that…
Q: The date is January 10, 2023, and Maryton Hotels' CFO George Smith is looking with dismay at his…
A: The income tax benefit refers to the tax provision or law that reduces the tax liability of the…
Q: Required information [The following information applies to the questions displayed below.] Shadee…
A: The income statement is prepared to report the profit or loss earned for the year. The result of the…
Q: Calculate the missing values. Express dollar values rounded to two decimal places and break-even…
A: The break-even point is a key idea in financial forecasting and decision-making because it makes it…
Q: A business operated at 100% of capacity during its first month, with the following results: Sales…
A: VARIABLE COSTINGVariable Costing is a Cost Managerial Accounting Method in which all variable cost…
Q: While James Craig and his former classmate Paul Dolittle both studied accounting at school, they…
A: C corporations are known for having “Double Taxation.” which means that C Corporation is taxed at…
Q: Chapter 08 Problem 8-26 LO 8-6 Use the sample sizes and the number of deviations determined below.…
A: Sample deviation rate typically refers to the standard deviation of a sample. Standard deviation…
Q: 2. A project that provides annual cash flows of $15,300 for nine years costs $74,000 today. Is this…
A: Net present value is a capital budgeting technique to take decision about whether the project should…
Q: Blue Marlin Company is considering the purchase of new equipment for its factory. It will cost…
A: Accounting Rate of Return is a financial metric that assesses profitability by comparing average…
Q: Exercise 22-19 (Algo) Schedule of cash payments LO P2 Zisk Company purchases direct materials on…
A: Schedule of cash payment for material purchase:— This budget is prepared to estimate the cash…
Q: Required: a. Compute the product costs and gross margins (revenue less cost of goods sold) for the…
A: In case of multiple products, the overheads are borne by different products collectively.
Q: Answer the questions below as it relates to Targeting by Decile Grid: The Market Basket consists of…
A: Decile is a consumer reporting and analytics system that assists marketing in raising revenue,…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: In order to increase the sales revenue, the business entities sold goods on a credit basis. Accounts…
Q: On January 1, 2007, Jones Company acquired 90 percent of the outstanding common stock of Smith…
A: It is often referred as 'Minority interest'. It is the percentage of ownership lower than 50% of…
Q: Game-On Sports operates in two distinct segments: athletic equipment and accessories. The income…
A: In vertical analysis of income statement, we show the sales number as 100% figure. All other line…
Q: Riker receives $45,000 from Troy as payment for a vehicle that has a fair value of $56,500. The…
A: The practice of documenting and summarizing financial transactions associated with the selling of…
Q: Grant and Marvin organized a new business as a corporation in which they own equal interests. The…
A: The tax savings reduces the tax liability of a taxpayer. The tax savings decrease payment for tax…
Q: On January 1, 2024, Majestic Mantles leased a lathe from Equipment Leasing under a finance lease.…
A: The present value of upcoming lease payments that a business is obligated to make in accordance with…
Q: Sandhill Motor Corporation bought equipment on January 1, 2025. The equipment cost $340000 and had…
A: Depreciable cost of asset means that cost per value on which depreciation is charged. This is…
Q: [The following information applies to the questions displayed below.] Greener Pastures Corporation…
A: Notes Payable is a Promissory Note issued by the borrower to the lender. It is a Written agreement…
Q: Rainy Co.'s financial position before its liquidation is as follows: ASSETS LIABILITIES AND EQUITY…
A: To settle financial commitments, pay off debts, and distribute any remaining proceeds to…
Q: Jing is concerned about having to repay her Old Age Security (OAS) pension that she receives. This…
A: Pension is defined as the fund collected from the taxpayer or employee during his term of…
Q: On January 1, 2019, Jonathan Corporation had 75,000 shares of $1 par value common stock issued and…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Assume that the City of Coyote has produced its financial statements for December 31, 2024, and the…
A: Government fund financial statements:These are the financial statements for governmental funds which…
Step by step
Solved in 5 steps with 2 images
- On December 15, 2001, star glass Co. entered into a 30-day forward contract to buy 10,000 yens at the forward rate of 1.50. 0n December 31, 2001, the forward rate was 1.25 and january 15,2002, the spot rate moved to 1.60. Provide the journal entries under each of the following scenarios: (a) the contract is settled by the actual purchase of yens; and (b) the contract is settled through net cash payment.You sold goods for USD 2 million and expected to receive the proceeds in 2 months. You entered into a forward exchange contract (“FEC”) at AUD/USD 0.9600. You have been advised your customer cannot pay the USD 2m until 3 months after the FEC date. Your bank agrees that you can extend your FEC at the historical rate. Current spot rate is AUD/USD 0.8800 with USD and AUD interest rates 1% pa and 6% pa respectively. What is the approximate amount of AUD you will now receive at the revised future date: Select one: A. AUD 2,301,000 B. AUD 2,083,000 C. AUD 2,273,000 D. AUD 2,109,000Suppose that two counterparties, A and B, enter a three-month forward contract on January 1st, whereby A buys USD1 million at a forward rate of AUD/USD 1.7662. On March 1st, A decides it no longer needs to buy USD1 million on 31 March, so it enters a one-month forward contract to sell USD1 million on 31 March at a forward rate of AUD/USD 1.8000 from counterparty Calculate the net cost to counterparty A, before transaction costs.
- SorCo. Inc. has just entered into a sale agreement with a customer. The contract is for $600,000. However, the payments will be made as follows: 1 August 20X1 on date of delivery $400,000; 1 August 20X2 $100,000 and 1 August 20X3 $100,000. SorCo has estimated that the interest rate required for this customer is 8%. SorCo follows IFRS. Required: Prepare the journal entry required to record the sale on 1 August 20X1 and the receipt of cash on 1 August 20X2 and 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.)On June 1, 2009, Benguet Manufacturing Corp. received raw materials from aforeign vendor when the spot rate is P 40.00. Payment of 100,000 foreign currency is due in 90days. On the same date, the company acquired a forward contract to buy 120,000 foreigncurrency in 90 days. The following forward rates per foreign currency were available: June 1, 90-day rate 40.30 June 30, 60-day rate40.40 July 31, 30-day rate40.10 1.What is the contract gain (loss) on hedge on an exposed position? a.(40,000) b.(30,000)c.(20,000) d.(10,000) 2. What is the exchange gain (loss) on a speculative contract in June 2009Suppose that on June 5, a Japanese Yen future contract is purchased at the ¥ 123 per dollar (opening price). Contract is for $ 5,000. Initial margin level is 15% of the value of the contract, and maintenance level is %10 of the value of the contract. The future price is ¥ 120 per dollar on June 6. There will be 15% increase in future price on June 7 and 8% decline on June 8? What is the value of the actual margin at the end of the date June 8? (ASSUMPTION: As margin account reaches above the initial margin level, withdraw the amount above the initial margin level)
- RXN's year-end is on December 31. On November 1, 2019 when the U.S. dollar was worth CDNS1.365, RXN sold merchandise to an American client for US$300,000. Full payment of this invoice was expected by March 1, 2020. On December 1, the spot rate was CDNS1.3450 and the three-month forward rate was CDNS1.3250. In order to minimize its Foreign Exchange risk and exposure, RXN entered into a forward contract with its bank on December 1, 2019 to deliver US$300,000 in three months' time. The spot rate at year-end was CDNS1.36 and the forward rate from December 31, 2019 to March 1, 2020 was CDN$1.34. On March 1, 2020, RXN received the USS300,000 from its client and settled its contract with the bank. The forward contract was to be accounted for as a fair value hedge of the US dollar receivable. Significant dates and exchange rates pertaining to this transaction are as follows: Spot Rates Forward Rates November 1, 2019 (Transaction date) US$1 = CDN$1.365 December 1, 2019 (Hedged date) December…On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 210,000 rubles in four months (on January 31, 2018) and receive $105,000 in US dollars. Exhange rates for the ruble follow: Date Spot Rate Forward Rate October 1, 2017 $0.46 $0.51 December 31, 2017 0.49 0.52 January 31, 2018 0.51 N/A Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Sharp must close its books and prepare financial statements on December 31. a. Prepare journal entries, assuming that Sharp entered into forward contact as a fair value hedge of a 210,000 ruble receivable arising from a sale made on October 1, 2017. Include entries for both the sale forward contract. b. Prepare journal entries, assuming that Sharp entered into the forward contract as a fair…The following information are the import transaction between Peerless Products and Tokyo Industries: On August 1, 20X1, Peerless contracts to purchase special-order goods from Tokyo Industries. Their manufacture and delivery will take place in 60 days (on October 1, 20X1). The contract price is 2,000,000 yen.. Timing USD/YEN Hedge Commencement 0.0065 30 days later (first reporting date) 0.0075 • 60 days later (purchase takes place and the payment is made) 0.0070 Required: prepare the journal entry based on the given information
- Suppose that two counterparties, A and B, enter a three-month forward contract on January 1st, whereby A buys USD1 million at a forward rate of AUD/USD 1.7662. On March 1st, A decides it no longer needs to buy USD1 million on 31 March, so it enters a one-month forward contract to sell USD1 million on 31 March at a forward rate of AUD/USD 1.8000 from counterparty C. a) Calculate the net cost to counterparty A, before transaction costs. b) Suppose a German importer owes an Australian exporting company 150,000 AUD, due in three months. ?_0 (EUR/AUD) 0.60 Se (EUR/AUD) 0.50 (0.3) and 0.65 (0.7) Premium on AUD call option R = EUR0.02 Exercise exchange rate E = 0.62 Time to expiry 3 months 1) What is the expected spot rate? 2) What is the expected value of payables in AUD under hedge? 3) Will the option to hedge be undertaken on the basis of…On June 1 Hitch Company sold goods to a foreign customer at a price of 15,000 Foreign Currency Units Hitch will receive payment in three months on September 1st. On June 1, Hitch entered into a forward contract maturing on September 1 as a fair value hedge of its FCU receivable. Prepare all journal entries, including adjusting entries, to record the transaction and the forward contract for Hitch. Date Spot rate Forward Rate* June 1 $0.30 $0.33 June 30 $0.32 $0.32 Spet 1 $0.34 Hitch closes its books on June 30 of every year. *Forward rate is for a contract written on June 1 to mature on September 1. First, prepare entries for the sale and receivable. Then, prepare the entries for the forward contract hedge. Finally, amortize any forward premium or discount to income using OCI, other comprehensive income.A finance company paid a merchant $3,975 for a conditional sale contract after discounting it to yield 18% compounded monthly. If the contract is for 20 monthly payments of $256.96 following a payment-free period, what is the time interval between the date of sale and the first payment? (Round your answer to the nearest month.) _____ months