Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help answering question c.? Forward exchange contract designated as a fair value hedge of a foreign-currency-denominated accounts receivable, weakening $ SS receivable and

Can someone help answering question c.?

image text in transcribedimage text in transcribed

Forward exchange contract designated as a fair value hedge of a foreign-currency-denominated accounts receivable, weakening $ SS receivable and forward contract on October 15 , 2021, December 31 , 2021, and January 15 , 2022. When computing fair values, ignore discounting. a For settlement on January 15,2022 b Ignore discounting in the computation of fair values. a. Prepare the journal entries to record the sale and all adjustments required for the accounts receivable and forward contract at October 15, 2021 , December 31, 2021 , and January 15, 2022. Note: If no entry is required, select "No entry" as your answers under Description and leave the debit and credit answers blank (zero). FV Hedge b. Reconcile to the forward rate at the forward contract's inception the net cash received for both the settlement of the receivable and the settlement of the forward-contract derivative. Net cash received from settlement of the receivable and forward-contract derivative is: q c. What amount of sales was recognized in the quarter ending December 31, 2021? $ x What amount of sales was recognized in the quarter ending March 31, 2022? $ What is the total amount of sales recognized across the quarters ending December 31, 2021, and March 31, 2022

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Integrated Statements Approach

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

2nd Edition

324312113, 978-0324312119

More Books

Students also viewed these Accounting questions