Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Parte Az 2 Wrap Test Merge & Center - General $ - % Insert De Fom Conditional Formats Cell Formatting Table Styles Font Alignment Number

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Parte Az 2 Wrap Test Merge & Center - General $ - % Insert De Fom Conditional Formats Cell Formatting Table Styles Font Alignment Number Cell 12 H YOU MUSTENTO YOUR ID NUMERON THORST SHEET TO HAVE QUESTION DISPLAYED PROPERLY On November 1, Year 1. Slava Company US based company purchased merchandise from a foreign supplier to At the date of purchase, Slava Company entered into a four month forward contract to buy FCU 380,000 380,000 with payment to be made in FC on March 1, Year 2 6 Relevant exchanmates for the care Forward Rate to Date Spot rate March 1, Y2) November 1 Year 1 $34.00 $3600 9 December 31, Year 1 $33.00 $3400 10 March 1 Year? $32.00 11 Slava Company's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12% (1 per month) is 0.98 12 Required 1 Complete the schedule below Accounts Receivable /Payable Forward Contract Forward Date Spot Rate Rate to USS value Change in USS Change in value 01/03/Y2 Fair Value Fair Value + 1. Your Name and ID 2 Question and Solving TE Partid Share Du www WE 27 Gews - An In De Farm 19 West Meige Center Sort Find Fitte Select $ -% Conditional Format Cel Forning Table Styles Styles G H 2. The forward tracta propulfated as a cash flow here of foreign currency payable/rechivale depending on what you have) Answer the questions below. Support your answer by computations, 21 horward contract will be worted on December 31 Yeart balance sheet as an ally Explain 22. What is the low value of the forward contract on December 31, Year 1 Show computation 31 What is the fair value of the forward contract on March 1. Year 2 Show contation 24 Hithe difference between spot and forward rates on November 1 year I should be accounted for (as a premium/discount and an expense/tevenue and what is the total amount? Provide computations The forma contract pronerly designated as a fait value hede of foreign currency mayable or receivable depending on what you have AP or AR) 11. vere all journal entries, including December 31 Year 1 adjusting entries to record the purchase or sale (depending on what you have AP or A) and the forward contract line Your Name and ID z Question and Solving DMS Q e DELL 3. The forward contract is properly designated as a fait value here of foreign currency payable or receivable (depending on what you have. AP or AR) 31. Prepare all journal entries, including December 31, Year 1 adjusting entries, to record the purchase or sale (depending on what you have: AP or AR) and the forward contract. Insert lines $32.00 4. All the information is the same, except that instead of forward contract the company purchased option with a strike price of Should the company exercise the option on 1/03/22 Explain per 1 FCU Chat TAA -A-SE Merge Center - $ - % 8.89 Conditional Form Formatting Table Styles Styles de Number Alignment Fone 12 G 1 TIN YOUR NUMBER ON THE FIRST SHEET TO HAVE QUESTION DESPLAYED PROPERLY 380,000 with payment to be made in FC on March 1, Year 2 on November 1 Year 1. Slava company las based company purchased merchandise from a foreign supplier to Al the date of purchase, Slava Company entered into a four month forward contract to buy FCU 380,000 van hartes for the Care Forward ateite Bate Spotre March 1, Y21 November 1 Year 1 $3400 $36.00 December 31 Year 1 $33.00 53400 10 March Year 532.00 11 Sava Coman's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 (1x per month) is 0.98 Aired: 12 1. Complete the schedulelow Accounts Receivable /Payable Forward Contract Forward Date Spot Rate Rate to USS value Change in USS 01/03/Y2 value Change in Fair Value Fair Value 1_Your Name and D 2 Question and Solving the properly rated as a cash flow decoffrey payable/receivable depending on what you have) Ariswer the questions below. Support your answer by computations 11 the war contract will be reported on December 31 Year 1 Balance sheet as an asset or liability bolin 22. What is the far valor at the forecard contract on December 31, Year 1% Sow computation fair value of forward contract on March 1 Year Show.com > 24 other stand for somber 1 year should be account for discount, and an enserevenue and what is the total amount? Provide computations 2 Question and Solving Per BU - O-A- Merge & Center - $ -% 988-98 Long Formatting Table Styles Styles Number Alignment Fent A A. The forward contract is properly designated as a fait valve hedet of forem currency payable of receivable (depending on what you have: AP or AR) Prepare all journal entries including mcember 31 Year 1 adjusting entries to record the purchase or sale (depending on what you have. NP or AR) and the forward contract. All the information is the same, except that instead of forward contract the company purchased option with a strike price of Should the company rercise the option on 1/03/2? Explain $32.00 per 1 FCU Parte Az 2 Wrap Test Merge & Center - General $ - % Insert De Fom Conditional Formats Cell Formatting Table Styles Font Alignment Number Cell 12 H YOU MUSTENTO YOUR ID NUMERON THORST SHEET TO HAVE QUESTION DISPLAYED PROPERLY On November 1, Year 1. Slava Company US based company purchased merchandise from a foreign supplier to At the date of purchase, Slava Company entered into a four month forward contract to buy FCU 380,000 380,000 with payment to be made in FC on March 1, Year 2 6 Relevant exchanmates for the care Forward Rate to Date Spot rate March 1, Y2) November 1 Year 1 $34.00 $3600 9 December 31, Year 1 $33.00 $3400 10 March 1 Year? $32.00 11 Slava Company's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12% (1 per month) is 0.98 12 Required 1 Complete the schedule below Accounts Receivable /Payable Forward Contract Forward Date Spot Rate Rate to USS value Change in USS Change in value 01/03/Y2 Fair Value Fair Value + 1. Your Name and ID 2 Question and Solving TE Partid Share Du www WE 27 Gews - An In De Farm 19 West Meige Center Sort Find Fitte Select $ -% Conditional Format Cel Forning Table Styles Styles G H 2. The forward tracta propulfated as a cash flow here of foreign currency payable/rechivale depending on what you have) Answer the questions below. Support your answer by computations, 21 horward contract will be worted on December 31 Yeart balance sheet as an ally Explain 22. What is the low value of the forward contract on December 31, Year 1 Show computation 31 What is the fair value of the forward contract on March 1. Year 2 Show contation 24 Hithe difference between spot and forward rates on November 1 year I should be accounted for (as a premium/discount and an expense/tevenue and what is the total amount? Provide computations The forma contract pronerly designated as a fait value hede of foreign currency mayable or receivable depending on what you have AP or AR) 11. vere all journal entries, including December 31 Year 1 adjusting entries to record the purchase or sale (depending on what you have AP or A) and the forward contract line Your Name and ID z Question and Solving DMS Q e DELL 3. The forward contract is properly designated as a fait value here of foreign currency payable or receivable (depending on what you have. AP or AR) 31. Prepare all journal entries, including December 31, Year 1 adjusting entries, to record the purchase or sale (depending on what you have: AP or AR) and the forward contract. Insert lines $32.00 4. All the information is the same, except that instead of forward contract the company purchased option with a strike price of Should the company exercise the option on 1/03/22 Explain per 1 FCU Chat TAA -A-SE Merge Center - $ - % 8.89 Conditional Form Formatting Table Styles Styles de Number Alignment Fone 12 G 1 TIN YOUR NUMBER ON THE FIRST SHEET TO HAVE QUESTION DESPLAYED PROPERLY 380,000 with payment to be made in FC on March 1, Year 2 on November 1 Year 1. Slava company las based company purchased merchandise from a foreign supplier to Al the date of purchase, Slava Company entered into a four month forward contract to buy FCU 380,000 van hartes for the Care Forward ateite Bate Spotre March 1, Y21 November 1 Year 1 $3400 $36.00 December 31 Year 1 $33.00 53400 10 March Year 532.00 11 Sava Coman's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 (1x per month) is 0.98 Aired: 12 1. Complete the schedulelow Accounts Receivable /Payable Forward Contract Forward Date Spot Rate Rate to USS value Change in USS 01/03/Y2 value Change in Fair Value Fair Value 1_Your Name and D 2 Question and Solving the properly rated as a cash flow decoffrey payable/receivable depending on what you have) Ariswer the questions below. Support your answer by computations 11 the war contract will be reported on December 31 Year 1 Balance sheet as an asset or liability bolin 22. What is the far valor at the forecard contract on December 31, Year 1% Sow computation fair value of forward contract on March 1 Year Show.com > 24 other stand for somber 1 year should be account for discount, and an enserevenue and what is the total amount? Provide computations 2 Question and Solving Per BU - O-A- Merge & Center - $ -% 988-98 Long Formatting Table Styles Styles Number Alignment Fent A A. The forward contract is properly designated as a fait valve hedet of forem currency payable of receivable (depending on what you have: AP or AR) Prepare all journal entries including mcember 31 Year 1 adjusting entries to record the purchase or sale (depending on what you have. NP or AR) and the forward contract. All the information is the same, except that instead of forward contract the company purchased option with a strike price of Should the company rercise the option on 1/03/2? Explain $32.00 per 1 FCU

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance Transactions Policy And Regulation

Authors: Hal Scott, Anna Gelpern

20th Edition

1609303164, 978-1609303167

More Books

Students also viewed these Finance questions