Question detail

Posted:

22 hours ago

Accounting

Description:

Marconi Products sells its products to countries around the world.On December 1, Year 3,Marconi sold products to a company in a foreign country at a total cost of 650,000 foreign currency units (FCs) when the spot rate was FC1 = $0.589.The terms of the sale required payment by April 1, Year 4. On December 3, Year 3, Marconi entered into a forward contract with the Bank of Nova Scotia at the 120-day forward rate of FC1 - $0.629.Hedge accounting is not applied.

The fiscal year-end of Marconi is December 31, and on this date the spot rate was FC1 = $0.602 and the forward rate was FC1 = $0.639. The payment from the foreign customer was received on April 1, Year 4, when the spot rate was FC1 = $0.647.

Required:

• Prepare the journal entries to record
• The sale and forward contract.
• Any adjustments required on December 31.
• The cash received in Year 4.
• Prepare the partial Balance Sheet of Marconi on December 31, Year 3, that shows the presentation of the receivable and the