on 1 MArch cooper sells to koroibete ltd USD 1000000 of sports equipment. the equipment is to
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Question:
on 1 MArch cooper sells to koroibete ltd USD 1000000 of sports equipment. the equipment is to be air freighted immediately delivery 1 march and payment is due on 1 august.
Cooper becomes concerned bout exchagne rates fluctations and on 30 april purchases an option to sell use 1000000 t an exchane rate 0.7300 for delivery on 1 august cooper pays 27000 for the option at this time. At 30 June, the value of the option is 9000.
1 march. aus1.00=Usd 0.7200
30 June aud 1.00=Usd 0.750
1 aug aud 1.00=usd o.7450
Prepar the necessray journal entried includes 30 June (adjustmetns).
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