On november 1, 2017, bernard company (a u. s.-based company) sold merchandise to a foreign customer for 240,000 fcus with payment to be received on april 30, 2018. at the date of sale, bernard entered into a six-month forward contract to sell 240,000 fcus. the company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. the following exchange rates apply:
date
spot rate
forward rate
(to april 30, 2018)
november 1, 2017
$
0.35
$
0.34
december 31, 2017
0.33
0.31
april 30, 2018
0.32
n/a
bernard's incremental borrowing rate is 12 percent. the present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610.
prepare all journal entries, including december 31 adjusting entries, to record the sale and forward contract.
what is the impact on net income in 2017?
what is the impact on net income in 2018?
Answers: 1
Business, 22.06.2019 09:40
As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?
Answers: 3
Business, 22.06.2019 19:20
Advertisers are usually very conscious of their audience. choose an issue of a popular magazine such as time, sports illustrated, vanity fair, rolling stone, or the like. from that issue select three advertisements to analyze. try to determine the audience being appealed to in each advertisement and analyze the appeals used to persuade buyers. how might the appeals differ is the ads were designed to persuade a different audience.
Answers: 2
Business, 22.06.2019 20:20
Faldo corp sells on terms that allow customers 45 days to pay for merchandise. its sales last year were $325,000, and its year-end receivables were $60,000. if its dso is less than the 45-day credit period, then customers are paying on time. otherwise, they are paying late. by how much are customers paying early or late? base your answer on this equation: dso - credit period = days early or late, and use a 365-day year when calculating the dso. a positive answer indicates late payments, while a negative answer indicates early payments.a. 21.27b. 22.38c. 23.50d. 24.68e. 25.91b
Answers: 2
On november 1, 2017, bernard company (a u. s.-based company) sold merchandise to a foreign customer...
Physics, 31.07.2020 02:01
Biology, 31.07.2020 02:01
English, 31.07.2020 02:01
Mathematics, 31.07.2020 02:01
Mathematics, 31.07.2020 02:01
Mathematics, 31.07.2020 02:01