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what are the journal entries? 0. On December 1, 2011, Barnum Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,000,000 ringgits
what are the journal entries?
0. On December 1, 2011, Barnum Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,000,000 ringgits per ringgit exchange rates apply: on March 1, 2012. The following U.S. dollar Forward Rate Date Spot Rate (to March 1, 2012) December 1, 2011 December 31, 2011 March 1, 2012 $0.044 0.040 $0.042 0.037 0.038 NA Barnum's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Which of the following correctly describes the manner in which Barnum Company will report the forward contract on its December 31, 2011, balance sheet? 0. On December 1, 2011, Barnum Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,000,000 ringgits per ringgit exchange rates apply: on March 1, 2012. The following U.S. dollar Forward Rate Date Spot Rate (to March 1, 2012) December 1, 2011 December 31, 2011 March 1, 2012 $0.044 0.040 $0.042 0.037 0.038 NA Barnum's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Which of the following correctly describes the manner in which Barnum Company will report the forward contract on its December 31, 2011, balance sheetStep by Step Solution
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