MBA-FP6152_KmetzDesiree_analyzingforeigntransactions (1).xlsx

MBA-FP6152_KmetzDesiree_analyzingforeigntransactions (1).xlsx

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem 1 1-Apr Bought Inventory valued at 25,00 1. Inventory $ 135 1-Jun Sold 50% of the inventory for 20, 2. COGS $ 225 1-Sep Collected 15,000 pesos from cust 3. Sales 1-Oct Paid 12,500 peso for inventory pu 4. AR $ 1,450 5. AP $ 3,625 Date Rate 6. Cash $ 200 1-Apr 0.18 1-Jun 0.2 Spetember 0.23 1-Oct 0.26 31-Dec 0.29 Weighted a 0.23 Problem 2 Cash flow hedge DR CR 6/1/2014 Accounts Receivable Sales To record sale of widgets No journal entry required to record the forward contract 6/30/2014 Accounts Receivable Foreign Exchange Gain To record foreign exchange gain AOCI Forward Contract To record the forward contract Loss on Forward Contract AOCI To record loss on forward contract AOCI Premium Revenue To allocate forward contract premium 8/1/2014 Accounts Receivable Foreign Exchange Gain To record foreign exchange gain AOCI
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Forward Contract To record forward contract Loss on Forward Contract AOCI To record loss on forward contract AOCI Premium Revenue To allocate forward contract premium Foreign Currency
Image of page 2
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern