International Accounting

QI: 1. On October, 2007, a US firm contracts to purchase inventory from a foreign customer located in UK for 150,000. The inventory is expected to be delivered on March 1, 2008, and the account to be settled one year later on October, 2008. 2. On October 2007, the US firms enters a forward contract to purchase 150,000 at the forward rate of $1.7. 3. Spot and forward rates for pesos on selected dutes are: Date Spot rate Octl, 2008 forward rate Oetl, 2007 S1.69 $1.7 Dec 31, 2007, $1.73 $1.74 March 1, 2008, $1.755 $1.775 Oct 1, 2008 $1.73 S1.73 Instructions: 1. Prepare the journal entryfies) to record the transactions in the US firm. 0:2 I. On December 1, 2007, a US firm sell 100 units of inventory for a French firm for 200,000 to be received on March 1, 2008 2 the firm's fiscal year-end is December 31. 3. On December 1, 2007, the US firm entered into a forward contract to sell 200,000 March 1, 2008, for $1.052. 4. The spot rates for euros at various times are as follows: Spot rate Forward rates (for March 1, 2008) 1-$1.052 December 31, 2007 1-S1.055 1-$1.06 March 1, 2008 1- SL.07 1-S1.07 Instructions: December 1, 2007 1-$1.05 1. Prepare the journal entry(ies) to record the transactions in the US firm