On April 1, a U.S. manufacturer sells equipment to a British importer. The sale is denominated in

Question:

On April 1, a U.S. manufacturer sells equipment to a British importer. The sale is denominated in pounds sterling £250,000.

a. Assuming that no forward contract is entered into, what would be the journal entries for the U.S. exporter on April 1, April 30, May 31, and June 30?

b. Assuming that a forward contract is entered into on April 1, what would be the journal entries for the U.S. exporter on April 1, April 30, May 31, and June 30?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (1 review)

Answered By

Ajeet Singh

Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!

5.00+ 4+ Reviews 24+ Question Solved

Related Book For book-img-for-question