Hedged Forecasted Purchase Mansfield Corporation purchases merchandise from a German supplier on a regular basis. On April

Question:

Hedged Forecasted Purchase Mansfield purchases merchandise from a German supplier on a regular basis. On April 1, 2013, Mansfield purchased ‚¬14,000 for delivery on June 30, 2013, in anticipation of an expected purchase of merchandise for ‚¬14,000 at the end of June. The forward contract was a qualified hedge of a forecasted transaction. Mansfield took delivery of the merchandise, settled the forward contract, and paid the German supplier ‚¬14,000 on June 30, 2013. The merchandise was subsequently sold in the U.S. on July 12, 2013, for $19,000 in cash. Relevant exchange rates ($/‚¬) are as follows:

Hedged Forecasted Purchase Mansfield Corporation purchases merchandise from a German

Required
Prepare the journal entries made by Mansfield on June 30 and July 12 concerning the above events. Assume Mansfield is a calendar-year company.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...