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E8.13 Hedged Forecasted Purchase Constellation Brands, a U.S. company, purchases merchandise from a German supplier on a regular basis. On April 1, 2020, Constellation purchased

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E8.13 Hedged Forecasted Purchase Constellation Brands, a U.S. company, purchases merchandise from a German supplier on a regular basis. On April 1, 2020, Constellation purchased 100,000 fr delivery on June 30, 2020, in anticipation of an expected purchase of merchandise for 1 00000 at the end of June. The forward contract was a qualified hedge of a forecasted transaction. Constellation took delivery of the merchandise, settled the forward contract, and paid the German supplier 100,000 on June 30, 2020. The merchandise was subsequently sold in the U.S. on July 12, 2020, for $150,000 in cash. Relevant exchange rates (S/) are as follows: Forward rate for delivery June 30, 2020 $1.08 Spot rate April 1, 2020.. .__.. . . $1.10 1.14 Required Prepare the journal entries made by Constellation Brands on June 30 and July 12 concerning the above events. Assume Constellation Brands is a calendar-year company, and records cost of goods sold at the time of sale. E8.13 Hedged Forecasted Purchase Constellation Brands, a U.S. company, purchases merchandise from a German supplier on a regular basis. On April 1, 2020, Constellation purchased 100,000 fr delivery on June 30, 2020, in anticipation of an expected purchase of merchandise for 1 00000 at the end of June. The forward contract was a qualified hedge of a forecasted transaction. Constellation took delivery of the merchandise, settled the forward contract, and paid the German supplier 100,000 on June 30, 2020. The merchandise was subsequently sold in the U.S. on July 12, 2020, for $150,000 in cash. Relevant exchange rates (S/) are as follows: Forward rate for delivery June 30, 2020 $1.08 Spot rate April 1, 2020.. .__.. . . $1.10 1.14 Required Prepare the journal entries made by Constellation Brands on June 30 and July 12 concerning the above events. Assume Constellation Brands is a calendar-year company, and records cost of goods sold at the time of sale

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