On March 20, Y3; Aylmer Inc entered into a consignment agreement with Belmont Services Corporation Aylmer had excess merchandise to sell but did not have the capacity to sell the items. Belmont agree to sell the items on behalf of Aylmer for a 12% commission of the sales price Other information relating to the items is below: The items that Aylmer consigned Belmont to sell on their behalf cost 252,500 Belmont sold 100% of the items within 3-months of receiving the items for 265,000 Aylmer had to ship the items to Belmont - shipping happened on March 20th. Since there were heavy items, the total cost of shipping added up to 3,000 Belmont and Aylmer settled once all the items were sold on July 20, Y3 Journal entries 1. Prepare all entries for Aylmer to account for the transactions. 2 Prenare all entries for Belmont to account for the transactions

On March 20, Y3; Aylmer Inc entered into a consignment agreement with Belmont Services Corporation Aylmer had excess merchandise to sell but did not have the capacity to sell the items. Belmont agree to sell the items on behalf of Aylmer for a 12% commission of the sales price Other information relating to the items is below: The items that Aylmer consigned Belmont to sell on their behalf cost 252,500 Belmont sold 100% of the items within 3-months of receiving the items for 265,000 Aylmer had to ship the items to Belmont - shipping happened on March 20th. Since there were heavy items, the total cost of shipping added up to 3,000 Belmont and Aylmer settled once all the items were sold on July 20, Y3 Journal entries 1. Prepare all entries for Aylmer to account for the transactions. 2 Prenare all entries for Belmont to account for the transactions

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stark, Inc., placed an order for inventory costing 500,000 FC with a foreign vendor on April 15 when the spot rate was 1 FC = $0.683. Stark received the goods on May 1 when the spot rate was 1 FC = $0.687. Also on May 1, Stark entered into a 90-day forward contract to purchase 500,000 FC at a forward rate of 1 FC = $0.693. Payment was made to the foreign vendor on August 1 when the spot rate was 1 FC = $0.696. Stark has a June 30 year-end. On that date, the spot rate was 1 FC = $0.691, and the forward rate on the contract was 1 FC = $0.695. Changes in the current value of the forward contract are measured as the present value of the changes in the forward rates over time and no separate accounting is given the time value of the contract. The relevant discount rate is 6%.1. Prepare all relevant journal entries suggested by the above facts assuming that the hedge is designated as a fair value hedge.2. Prepare a partial income statement and balance sheet as of the company’s June 30…