Question
$16,850 gain $16,850 loss $14,040 loss $14,040 gain Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment
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$16,850 gain
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$16,850 loss
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$14,040 loss
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$14,040 gain
Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied:
| Date | Spot Rate | Forward Rate to Jan.15 | ||||
| December 16, 2021 | $ | 0.00082 | $ | 0.00089 | ||
| December 31, 2021 | 0.00080 | 0.00083 | ||||
| January 15, 2022 | 0.00086 | 0.00086 | ||||
Assuming a forward contract was entered into on December 16, how would the forward contract be reflected on Jacksons December 31, 2021 balance sheet
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Managerial Accounting For Undergraduates
Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.
1st Edition
1618531123, 9781618531124
