Callahan, Inc., sells a forward on ounces of gold to remove uncertainty regarding the revenue it will
Question:
Callahan, Inc., sells a forward on ounces of gold to remove uncertainty regarding the revenue it will recognize when it sells its gold inventory. The forward represents a perfect cash flow hedge. When Callahan settles the forward, it pays $100,000 to the counterparty.
Required:
What journal entry(ies) should Callahan make prior to and at the settlement date?
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Prior to settlement DR Other comprehensive income 100000 CR Forward contract 100000 To ...View the full answer
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Related Book For 
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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