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Braxton Company purchased inventory from a company located in Mexico for MXP 300,000 on November 15. Braxton's year end is December 31. On February 15,

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Braxton Company purchased inventory from a company located in Mexico for MXP 300,000 on November 15. Braxton's year end is December 31. On February 15, payment is due in pesos. The direct spot rates for pesos are as follows: Prepare the entries needed at the date of purchase, year-end, and at the repayment date. Commodore Company sold E 100,000 of merchandise to a European company on December 1 . At that date the spot rate for the euro was.60. At the company's year end, the spot rate for the euro was .59. Receipt of the proceeds is due March 1. At that point, the spot was .57. Prepare the entries needed at the date of sale, year-end, and the date payment was received. Axel Company purchased CY1,000,000 of goods from a Chinese supplier on November 1 and entered a forward contract at that time to purchase 1,000,000 Chinese yuan on March 1 when payment is due. Axel's year end is December 31 . Relevant rates are as follows: Prepare the entries needed to record the purchase of the inventory and the forward contract at the date of purchase, year-end, and when payment was made. On September 1, Fisher Industries sold goods to a Japanese company with JPY 10,000,000 to be received in payment on February 1. Fisher also entered into a forward contract to sell JPY 10,000,000 on February 1. The following exchange rates apply: Prepare the entries needed to record the sale of goods and the forward contract at the date of sale, year-end and when payment is received. Part 2- Options On June 1, Alexander Corp Sold goods to a foreign customer at a price of 1,000,000 pesos. It will receive payment in three months on Sept. 1. On June 1, Alexander also purchased an option to sell 1,000,000 pesos in three months at a strike price of $.045. Relevant exchange rates and premiums are: Prepare the entries for the receivable and option contract. On September 15, Bridge Corp purchased goods from a foreign supplier at a price of 300,000 euros. Payment is due October 31 . They also purchased an option to buy 300,000 euro on Oct 31 at a strike price of $1.00. Relevant exchange rates and premiums are: Prepare the entries for the payable and option contract

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