Question
On November 1, 2014, Ross Corporation, a calandar-year U.S. Corporation, invested in a purely ?speculative contact to purchase 1 million euros on January 30, 2015,
On November 1, 2014, Ross Corporation, a calandar-year U.S. Corporation, invested in a purely ?speculative contact to purchase 1 million euros on January 30, 2015, from Trattoria Company, an ?Italian borkerage firm. Ross agreed to purchase 1,000,000 euros from Trattoria at a fixed price of ?$1.420 per euro. Trattoria agreed to transmit 1,000,000 euros to Ross on January 30, 2015. ?Net settlement is not permitted. The spot rates for euros are: ?Nov 01, 2014 1 euro-$1.415 ?Dec 31, 2014 1 euro-$1.395 ?Jan 30, 2015 1 euro-$1.410 ?The 30 day future rate for euros on December 31, 2014 was $1.405. Prepare the General Journal entries that ?Ross would record on November 1, December 31, and January 30. ?Please help me. Thank you!
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