advanced accounting. i dont need the memo. i need help with these journal entries. i can figure out the rest.
4 main types ACTG 4650 Assignment 3 - Spring 2020 Due March 3 blic company, entered into a two-year contract with a o. to buy raw materials for one of their manufacturing processes the market price at the time of the purchase. The contract calls e to buy a minimum of 1 million units and a maximum of 3 million over the two-year term Acme will pay for goods purchased in types of con dollars at the time of purchase. Acme regularly enters into these of contracts for acquiring raw materials. This, however, is the rest hey have entered into a contract with a foreign supplier. Acme Inc., a public company, entered Canadian Co. to buy raw at 90% of the market pri for Acme to buy a minimur Canadian dollars at the time time they have entere Due to the payme dollar = .77 US dollars). A the payment in a foreign currency, Acme has also entered into a a contract that allows the company to acquire up to 5 million Canadian over the next two years at the current exchange rate (1 Canadian .77 US dollars). Acme has never entered into a contract of this type. orward contract cost Acme $300,000. Acme plans to acquire Canadian dollars nars under this contract for each payment if the exchange rate has increased. The contract does not stipulate a minimum amount of Canadian dollars Acme must acquire during the two years. The controller at Acme is seeking guidance on accounting for these two contracts. Prepare a memo to the controller explaining the accounting issues associated with each contract including how they will be recorded on the books and their potential financial statement effects. Be sure to cite appropriate authoritative literature as needed. lying? mkt price (90% of market) ral amt or payment provision Imil - 3 mil tial investment o Ellement no gerate 4 main types ACTG 4650 Assignment 3 - Spring 2020 Due March 3 blic company, entered into a two-year contract with a o. to buy raw materials for one of their manufacturing processes the market price at the time of the purchase. The contract calls e to buy a minimum of 1 million units and a maximum of 3 million over the two-year term Acme will pay for goods purchased in types of con dollars at the time of purchase. Acme regularly enters into these of contracts for acquiring raw materials. This, however, is the rest hey have entered into a contract with a foreign supplier. Acme Inc., a public company, entered Canadian Co. to buy raw at 90% of the market pri for Acme to buy a minimur Canadian dollars at the time time they have entere Due to the payme dollar = .77 US dollars). A the payment in a foreign currency, Acme has also entered into a a contract that allows the company to acquire up to 5 million Canadian over the next two years at the current exchange rate (1 Canadian .77 US dollars). Acme has never entered into a contract of this type. orward contract cost Acme $300,000. Acme plans to acquire Canadian dollars nars under this contract for each payment if the exchange rate has increased. The contract does not stipulate a minimum amount of Canadian dollars Acme must acquire during the two years. The controller at Acme is seeking guidance on accounting for these two contracts. Prepare a memo to the controller explaining the accounting issues associated with each contract including how they will be recorded on the books and their potential financial statement effects. Be sure to cite appropriate authoritative literature as needed. lying? mkt price (90% of market) ral amt or payment provision Imil - 3 mil tial investment o Ellement no gerate
