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Required: Please help A - E The company closes its books and prepares third - quarter financlal statements on September 3 0 . Required: a
Required: Please help AE The company closes its books and prepares thirdquarter financlal statements on September Required: a Assume that the beer arrlved on August and the company made payment on October There was no attempt to hedge the exposure to forelgn exchange risk. Prepare journal entrles to account for this Import purchase. b Assume that the beer arrlved on August and the company made payment on October On August the company entered Into a twomonth forward contract to purchase euros. The company designated the forward contract as a cash flow hedge of a forelgn currency payable. Forward points are excluded In assessing hedge effectiveness and amortized to net income using a straightIine method on a monthly basls. Prepare journal entrles to account for the Import purchase and forelgn currency forward contract. c Assume that the company ordered the beer on August The beer arrlved and the company pald for It on October On August the company entered into a twomonth forward contract to purchase euros. The company designated the forward contract as a falr value hedge of a foreign currency firm commitment. The falr value of the firm commitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedge effectlveness. Prepare journal entrles to account for the forelgn currency forward contract, forelgn currency firm commitment, and Import purchase. d Assume that the company ordered the beer on August The beer arrlved and the company paid for It on October On August the company purchased a twomonth call option on euros. The company designated the optlon as a falr value hedge of a forelgn currency firm commltment. The falr value of the firm commltment is measured by referring to changes in the spot rate. The time value of the optlon is excluded from the assessment of hedge effectiveness, and the change in time value is recognized In net Income over the life of the option. Prepare journal entrles to account for the forelgn currency optlon, forelgn currency firm commitment, and import purchase. e Assume that, on August the company forecasted the purchase of beer on October Assume that the beer arrived on August and the company made payment on October There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase. Assume that the beer arrived on August and the company made payment on October On August the company entered into a twomonth forward contract to purchase euros. The company designated the forward contract as a cash flow hedge of a foreign currency payable. Forward points are excluded in assessing hedge effectiveness and amortized to net income using a straightline method on a monthly basis. Prepare journal entries to account for the import purchase and foreign currency forward contract. Assume that the company ordered the beer on August The beer arrived and the company paid for it on October On August the company entered into a twomonth forward contract to purchase euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, and import purchase. Assume that the company ordered the beer on August The beer arrived and the company paid for it on October On August the company purchased a twomonth call option on euros. The company designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase. Assume that, on August the company forecasted the purchase of beer on October On August the company acquired a twomonth call option on euros. The company designated the option as a cash value hedge of a forecasted foreign currency transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import purchase.
Required: Please help AE
The company closes its books and prepares thirdquarter financlal statements on September
Required:
a Assume that the beer arrlved on August and the company made payment on October There was no attempt to hedge the
exposure to forelgn exchange risk. Prepare journal entrles to account for this Import purchase.
b Assume that the beer arrlved on August and the company made payment on October On August the company entered
Into a twomonth forward contract to purchase euros. The company designated the forward contract as a cash flow hedge
of a forelgn currency payable. Forward points are excluded In assessing hedge effectiveness and amortized to net income using a
straightIine method on a monthly basls. Prepare journal entrles to account for the Import purchase and forelgn currency forward
contract.
c Assume that the company ordered the beer on August The beer arrlved and the company pald for It on October On August
the company entered into a twomonth forward contract to purchase euros. The company designated the forward
contract as a falr value hedge of a foreign currency firm commitment. The falr value of the firm commitment is measured by referring
to changes in the forward rate. Forward points are not excluded in assessing hedge effectlveness. Prepare journal entrles to
account for the forelgn currency forward contract, forelgn currency firm commitment, and Import purchase.
d Assume that the company ordered the beer on August The beer arrlved and the company paid for It on October On August
the company purchased a twomonth call option on euros. The company designated the optlon as a falr value hedge of
a forelgn currency firm commltment. The falr value of the firm commltment is measured by referring to changes in the spot rate. The
time value of the optlon is excluded from the assessment of hedge effectiveness, and the change in time value is recognized In net
Income over the life of the option. Prepare journal entrles to account for the forelgn currency optlon, forelgn currency firm
commitment, and import purchase.
e Assume that, on August the company forecasted the purchase of beer on October
Assume that the beer arrived on August and the company made payment on October There was no attempt to hedge the exposure to foreign exchange risk. Prepare journal entries to account for this import purchase.
Assume that the beer arrived on August and the company made payment on October On August the company entered into a twomonth forward contract to purchase euros. The company designated the forward contract as a cash flow hedge of a foreign currency payable. Forward points are excluded in assessing hedge effectiveness and amortized to net income using a straightline method on a monthly basis. Prepare journal entries to account for the import purchase and foreign currency forward contract.
Assume that the company ordered the beer on August The beer arrived and the company paid for it on October On August the company entered into a twomonth forward contract to purchase euros. The company designated the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate. Forward points are not excluded in assessing hedge effectiveness. Prepare journal entries to account for the foreign currency forward contract, foreign currency firm commitment, and import purchase.
Assume that the company ordered the beer on August The beer arrived and the company paid for it on October On August the company purchased a twomonth call option on euros. The company designated the option as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the spot rate. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option, foreign currency firm commitment, and import purchase.
Assume that, on August the company forecasted the purchase of beer on October On August the company acquired a twomonth call option on euros. The company designated the option as a cash value hedge of a forecasted foreign currency transaction. The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Prepare journal entries to account for the foreign currency option and import purchase.
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