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On December 15, 2001, Star glass Co. entered into a 30-day forward contract to buy 10,000 yens at the forward rate of 1.50. 0n December
On December 15, 2001, Star glass Co. entered into a 30-day forward contract to buy 10,000 yens at the forward rate of 1.50. 0n December 31, 2001, the forward rate was 1.25 and January 15,2002, the spot rate moved to 1.60. Provide the journal entries under each of the following scenarios:
(b) The contract is settled through net cash payment.
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Future contract must be accounted for now when it is signed and again on the date when the ...
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Financial Accounting with IFRS Fold Out Primer
Authors: John Wild
5th edition
978-0077408770, 77408772, 978-0077413804
