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Please show calculations used for journal entries for all the required. Thanks. Problem 1 Imperial Corp., a U.S. corporation, entered into a contract on November
Please show calculations used for journal entries for all the required. Thanks.
Problem 1 Imperial Corp., a U.S. corporation, entered into a contract on November 1, 2023, to sell two machines to Crown Company, for 95,000 foreign currency units (FCU). The machines were to be delivered and the amount collected on March 1, 2024. In order to hedge its commitment, Imperial entered into a forward contract for 95,000 FCU delivery on March 1, 2024. The forward contract met all conditions for hedging an identifiable foreign currency commitment. Selected exchange rates for FCU at various dates were as follows: November 1, 2023- Spot rate $1.3076 Forward rate for delivery on March 1, 2024 1.2980 December 31, 2023 - Spot rate 1.3060 Forward rate for delivery on March 1, 2024 March 1, 2024- Spot rate 1.3150 1.2972 Required: Prepare all journal entries relative to the above on the books of Imperial Corp. on the following dates: 1. November 1, 2023. 2. Year-end adjustments on December 31, 2023. 3. March 1, 2024. (Include all adjustments related to the forward contract.)
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