Question
Choy Co. of New York purchased rice from China for 100,000 renminbi (r) on Nov. 1, 2015. Payment is due on Jan. 30, 2016. The
Choy Co. of New York purchased rice from China for 100,000 renminbi (r) on Nov. 1, 2015. Payment is due on Jan. 30, 2016. The rates were as follows:
Date Spot Rate
Nov. 1, 2015 $0.121
Dec. 31, 2015 $0.124
Jan. 30, 2016 $0.126
- 1 Record all journal entries on the transaction, balance sheet and settlement dates. Show computations.
- 2 What is Choy’s overall gain or loss from these transactions? Show computations.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Please refer to the solution below for part a and b Reason behind journal enteries on forward contract date and maturity date in the books of buyer Fo...
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Step: 2
Step: 3
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
