Business, 10.05.2020 07:57 beckytank6338

Hedged Purchase Commitment and Exposed Liability Position, with Adjusting Entries
On November 20, 2020, International Foods, a U. S. company, agreed to purchase merchandise from a Hong Kong supplier at a price of HK$10,000,000. The merchandise will be delivered on January 10, 2021, and the amount owing is payable on April 10, 2021, in Hong Kong dollars. To hedge the expected future payment, International entered a forward contract for purchase of HK$10,000,000 on April 10, 2021. On January 10, 2021, the merchandise was delivered as promised. On April 10, International closed the forward contract and used the Hong Kong dollars to pay its supplier. International accounting year ends December 31. Exchange rates ($/HK$) are as follows:
Spot rate Forward rate for delivery April 10, 2021
November 20, 2020 $0.1289 $0.1293
December 31,2020 0.1299 0.1304
January 10,2021 0.1301 0.1302
April 10,2021 0.1303
Prepare the journal entries International Foods made on January 10,2021 and April 10.2021 to record the above transactions, as well as its end-of-year adjusting entries on December 31, 2020.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 15:00

He cornerstone of arsoac, the is organized into four like battalions and provides nighttime, all-weather, medium range insertion, extraction, and resupply capability in hostile or denied areas.

Answers: 2

Answer

Business, 22.06.2019 00:10

What are the forecasted levels of the line of credit and special dividends? (hints: create a column showing the ratios for the current year; then create a new column showing the ratios used in the forecast. also, create a preliminary forecast that doesn’t include any new line of credit or special dividends. identify the financing deficit or surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new line of credit or special dividend.) now assume that the growth in sales is only 3%. what are the forecasted levels of the line of credit and special dividends?

Answers: 1

Answer

Business, 22.06.2019 12:50

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u.s. treasury yield curve can take. check all that apply.

Answers: 2

Answer

Business, 22.06.2019 14:00

Why is efficiency an important economic goal?

Answers: 2

Answer

You know the right answer?

Hedged Purchase Commitment and Exposed Liability Position, with Adjusting Entries
On November...

Questions