Question 4 18 pts A U.S. company sells merchandise to customers in Germany and receives payment in euros. The company's accounting year ends June 30. On March 1, the company receives an order from a German customer for 100,000 in merchandise, payable in euros on delivery, delivery to take place August 15. On the same day the company enters into a forward contract for delivery of 100,000 on August 15. The forward qualifies as a fair value hedge of a firm commitment. On August 15, the company delivers the merchandise, receives payment of 100,000 from the customer, closes the forward contract and receives U.S. dollars. Information on $/ exchange rates is as follows: March 1 June 30 August 15 Spot Rate $1.235 1.232 1.228 Forward Rate for August 15 Delivery $1.233 1.231 1.228 Required Make the journal entries to record the above events, including appropriate year-end adjusting entries. Use the capital letters below and list the debit letter and amounts first. A. Cash E. Foreign Currency B. Exchange Gain F. Investment in Forward C. Exchange Loss G. Sales Revenue. D. Firm Commitment Question 4 18 pts A U.S. company sells merchandise to customers in Germany and receives payment in euros. The company's accounting year ends June 30. On March 1, the company receives an order from a German customer for 100,000 in merchandise, payable in euros on delivery, delivery to take place August 15. On the same day the company enters into a forward contract for delivery of 100,000 on August 15. The forward qualifies as a fair value hedge of a firm commitment. On August 15, the company delivers the merchandise, receives payment of 100,000 from the customer, closes the forward contract and receives U.S. dollars. Information on $/ exchange rates is as follows: March 1 June 30 August 15 Spot Rate $1.235 1.232 1.228 Forward Rate for August 15 Delivery $1.233 1.231 1.228 Required Make the journal entries to record the above events, including appropriate year-end adjusting entries. Use the capital letters below and list the debit letter and amounts first. A. Cash E. Foreign Currency B. Exchange Gain F. Investment in Forward C. Exchange Loss G. Sales Revenue. D. Firm Commitment Question 4 18 pts A U.S. company sells merchandise to customers in Germany and receives payment in euros. The company's accounting year ends June 30. On March 1, the company receives an order from a German customer for 100,000 in merchandise, payable in euros on delivery, delivery to take place August 15. On the same day the company enters into a forward contract for delivery of 100,000 on August 15. The forward qualifies as a fair value hedge of a firm commitment. On August 15, the company delivers the merchandise, receives payment of 100,000 from the customer, closes the forward contract and receives U.S. dollars. Information on $/ exchange rates is as follows: March 1 June 30 August 15 Spot Rate $1.235 1.232 1.228 Forward Rate for August 15 Delivery $1.233 1.231 1.228 Required Make the journal entries to record the above events, including appropriate year-end adjusting entries. Use the capital letters below and list the debit letter and amounts first. A. Cash E. Foreign Currency B. Exchange Gain F. Investment in Forward C. Exchange Loss G. Sales Revenue. D. Firm Commitment Question 4 18 pts A U.S. company sells merchandise to customers in Germany and receives payment in euros. The company's accounting year ends June 30. On March 1, the company receives an order from a German customer for 100,000 in merchandise, payable in euros on delivery, delivery to take place August 15. On the same day the company enters into a forward contract for delivery of 100,000 on August 15. The forward qualifies as a fair value hedge of a firm commitment. On August 15, the company delivers the merchandise, receives payment of 100,000 from the customer, closes the forward contract and receives U.S. dollars. Information on $/ exchange rates is as follows: March 1 June 30 August 15 Spot Rate $1.235 1.232 1.228 Forward Rate for August 15 Delivery $1.233 1.231 1.228 Required Make the journal entries to record the above events, including appropriate year-end adjusting entries. Use the capital letters below and list the debit letter and amounts first. A. Cash E. Foreign Currency B. Exchange Gain F. Investment in Forward C. Exchange Loss G. Sales Revenue. D. Firm Commitment