Paris negotiated the note by delivery to Germany, Germany to Italy, and Italy to Switzerland. Germany had known that Paris was bankrupt when Paris issued the note. Who would be liable to Switzerland?
Q: Ahnuld Corporation, a health juice producer, recently expanded its sales through exports to foreign…
A: Hedging refers to a risk management strategy used to minimize the risk related to the assets. It…
Q: Schaffhausen, the maker, issued a promissory note to Zug, the payee which states: "I, Schaffhausen,…
A: Promissory Note is a negotiable instrument bound by rules and…
Q: The Isle of Palms Company (IOP), a U.S.-based entity, has a wholly owned subsidiary in Israel that…
A: Step 1 As per US GAAP, in all of the financial statements are prepared as per the functional…
Q: A bill of exchange has Naples as drawer, Venice as drawee and Palermo as payee. The bill was then…
A: A bill of exchange comes under negotiable instrument. Drawer is the person who draws the bill i.e.…
Q: equired : Discuss the accounting treatment of the above transactions
A: Foreign exchange: Foreign exchange can be defined as the process where one currency is exchanged for…
Q: On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which…
A:
Q: The ABC Corporation is a U.S. exporter that invoices its exports to the United Kingdom in British…
A: U.S. exporter bills the exports at foreign currency i.e. British pounds. Hence, the exporter…
Q: Alman Company sold pharmaceuticals to a Swedish company for 200,000 kronor (SKr) on April 20, with…
A: Introduction: Accounting journal entries are used to record banking transactions in the books of…
Q: Assume that a U.S.-based company is issuing securities to foreign investors who require financial…
A: Determine the appropriate accounting for this sale and leaseback for the years ending December31,…
Q: On December 2, 2020, Troll Company, a U.S. company, sold machinery to Amigo, a Mexican company, with…
A: Accounting currency: It is any monetary unit that is used in recording of the transactions in the…
Q: ara Corporation issued a promissory note denominated in foreign currency for the purchase made from…
A: Solution Concept in respect of the monetary assets and liabilities , there shall be initial and…
Q: Ahnuld Corporation, a health juice producer, recently expanded its sales through exports to foreign…
A: Hedging is a financial technique that investors should be aware of and employ because of the…
Q: A U.S. exporter has a Thai baht account receivable resulting from an export sale on June 1 to a…
A: The US exporter signed a forward contract on June 1. The spot Rate was $ 0.022 on that date The…
Q: You, a foreign exchange dealer of your bank, are informed that your bank has sold a T.T. on…
A: Arbitrage profit caliculated in step 2
Q: A company based in the United States makes a transaction with a Japanese Company. The contract…
A: Companies select the currencies in which they invoice their international transactions. Currency…
Q: Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 121,000…
A: Accounts receivable: Accounts receivable is the amount of cash owed to the company by the customer…
Q: On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in…
A: The question is related to the forward Accounting for trading.
Q: On 12 August, a Commonwealth Bank dealer in Melbourne concluded a transaction with a Citibank dealer…
A: Given, Contract amount = USD5,000,000 Exchange rate AUD/USD = 0.50 Delivery date = August 14…
Q: Assume that a U.S.-based company is issuing securities to foreign investors who require financial…
A: Securities refers to the type of financial instruments that are issued by a company, which grants…
Q: On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which…
A: Foreign Exchange gain or loss = Amount payable on 1 March 2020 - Amount payable on 1 June 2021 =…
Q: Berlin executed a promissory note in favor of Munich by way of accommodation. It says: "Pay to…
A: In the given case Munich is not correct...
Q: Westminster executed a promissory note with a face value of Php800,000.00, payable to the order of…
A: Promissory note is negotiable instrument that represent written promise by issure to another party.…
Q: On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which…
A: Agreement is a mutual consent between the parties to perform a particular task. The parties must be…
Q: On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which…
A: Exchange rates are used to denote the value of one currency in terms of another currency, and they…
Q: Baxter Industries, Inc., is a U.S. company that has a wholly owned subsidiary. The subsidiary…
A: “Hey, since there are multiple requirements posted, we will answer second requirement. If you want…
Q: On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which…
A: Currency Exchange Rate is the rate of substitution through which one currency can be exchanges for…
Q: On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in…
A: Cost of goods sold = forward contract rate - foreign exchange loss
Q: On August 1, Pure Joy Corporation (a U.S.-based importer) placed an order to purchase merchandise…
A: please like the answer your response matters…
Q: Mr. Duterte and Xi Jinping entered into a loan agreement whereby the Philippines is the borrower and…
A: Tax is the charge which is levied by the government on the taxable income of the business. Exemption…
Q: On 1 March 2021 Dora Ltd enters into a binding agreement with a New Zealand company, which requires…
A: As per IAS 21, a transaction entered into a foreign currency need to be entered at the initial…
Q: On 1 March 2020Holmes Ltd enters into a binding agreement with a New Zealand company, which requires…
A: Particulars Amount(NZ) Exchange Rate Amount (AUD) As on 1 March 2020 Cost…
Q: Tunisia sold to Ireland a Rolex watch for Php5,000,000.00. Ireland then issued a promissory note to…
A: In the situation given Denmark acquired the note in good faith and for value, may he enforce payment…
Q: On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which…
A: Non – monetary items: These are the assets that cannot be readily converted into cash and shall…
Q: On November 1, 2020, Ocean Grove, Inc., a U.S. company, purchased from Monterrey Corporation, a…
A: Forward contract can be defined as a contract in which the buyer of the contract agrees with the…
Q: "I, Saxony, promise to pay Bavaria the amount of Php 18,000.00 eight days after completion of the…
A: As per the provision of Indian negotiable instruments act 1881,xA promissory note is- •an…
Q: What amount of foreign exchange gain or loss should be recognized on May 8 ?
A: Given information is: ABC Corp., a US corporation, purchased goods on credit from a British company…
Q: The following four banks of Switzerland have offered exchange rates against OMR to Mr. Ammar:…
A: Exchange Rates against OMR are provided below: CHF/OMR Rates are: Bank Bid Ask Swiss National…
Q: Apex Ltd, is a computer software manufacturing company based in the United States of America (USA).…
A: According to IAS 21 foreign exchange the transaction is been recorded.
Q: Almira, Inc. is a U.S.-based manufacturer and wholesaler. On 10/15/20x1, Almira made its first…
A: Foreign exchange risk is the possibility of financial loss as a result of fluctuating exchange…
Q: On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which…
A: Foreign Exchange gain or loss = Amount payable on 1 March 2020 - Amount payable on 1 June 2021 =…
Q: On August 1, Ling-Harvey Corporation (a U.S.-based importer) placed an order to purchase merchandise…
A: a.
Q: Sicily draws a bill of exchange that states: "Eight months from date, pay to Tuscany or his order…
A: A bill of exchange is an instrument in writing containing an unconditional order…
Q: On Dec 1, 2015, XYZ (a US firm) entered into a transaction to import raw materials from EU country.…
A: Hedge Accounting is a method of accounting that allows companies to declare gains and losses on…
Q: On August 1, Ling-Harvey Corporation (a U.S.-based importer) placed an order to purchase merchandise…
A: a.
Q: Las Palmas authorized Palma to sign a bill of exchange in his (Las Palmas’s) name. The bill reads:…
A: The answer is provided as follows:
Step by step
Solved in 2 steps
- Berlin executed a promissory note in favor of Munich by way of accommodation. It says: "Pay to Munich or order the amount of Php8,000.00. Signed, Berlin." Munich then indorsed the note to Cologne, and Cologne to Munster. When Munster sought collection from Munich, the latter countered as indorser that there should have been a presentment first to the maker who dishonors it. Is Munich correct? a. No, since Munich is the real debtor and thus, there is no need for presentment for payment and dishonor by the maker. b. Yes, since as an indorser who is secondarily liable, there must first be presentment for payment and dishonor by the maker. c. No, since the absolute rule is that there is no need for presentment for payment and dishonor to hold an indorser liable. d. Yes, since the secondary liability of Munich and Cologne would only arise after presentment for payment and dishonor by the maker.Before boarding his flight to Zurich, Switzerland, Ian purchased CHF900 from his bank when the exchange rate was C$1 = CHF0.9753. However, Ian had to cancel the trip. Ian returned to the bank to convert the Swiss currency back into Canadian dollars. If the exchange rate changed to C$1 = CHF0.984, how many Canadian dollars would Ian have lost in these transactions? Assume the bank has a 1.00% commission on both the sale and the purchase of the funds. C Round to the nearest cent Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sureLocal Corp imported a heavy machine from the US for US$50,000 on October 10, 2019. A letter of credit was opened with a Makati branch based on the commercial invoice for US$50,000, on which Local Corpl made a 100% deposit cover based on the exchange rate of $1.00 to P27.50. Shipment of the heavy machine was effected on December 30, 2019, at which time the exporter collected the proceeds of the letter of credit when the prevailing exchange rate was $1.00 to P28.00. From the exchange rate fluctuation, Local Corp realized: Group of answer choices A. P25,000 gain B.P25,000 loss C. P5,000 gain D. No gain, No loss
- Westminster executed a promissory note with a face value of Php800,000.00, payable to the order of Bath. Bath indorsed the note to Whiltshire, to whom Bath owed Php500,000.00. If Westminster has no defense at all against Bath, for how much may Whiltshire collect from Westminster? a. None, as Whiltshire's remedy is to run after his debtor, Bath. b. Php300,000.00, as he is a holder for value to the extent of the difference between Bath's debt and the value of the note. c. Php500,000.00, as he is a holder for value to the extent of his lien. d. Php800,000.00, but with the obligation to hold Php500,000.00 for Bath's benefit.Assume that a U.S.-based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes for given problem. Harrington Company was sued by an employee in late 2017. General counsel concluded that there was an 80 percent probability that the company would lose the lawsuit. The range of possible loss is estimated to be $20,000 to $70,000, with no amount in the range more likely than any other. The lawsuit was settled in 2018, with Harrington making a payment of $60,000.a. Determine the appropriate accounting for this lawsuit for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.b. Prepare the entry(ies) that Harrington would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.On September 30, 2020, Chicken Ltd., a Canadian company, entered into a contract to purchase goodsfrom Wing Ltd., a foreign corporation. The terms of the contract call for the goods to be delivered toChicken Ltd.'s Edmonton location on May 30, 2021. The cost of goods is EUR $1,000,000 to be settled onJuly 31, 2021. On September 30, 2020, Chicken Ltd. also arranged for a forward contract through its bank for EUR$1,000,000. The goods were delivered on time, and Chicken Ltd, settled with Wing Ltd. on July 31, 2021.Chicken Ltd. has a April 30 year-end.The spot and forward rates are as follows: Spot Rate ($CAD)1 USD = x.xX CAD Forward Rate($CAD)1 USD = XXX CAD September 30, 2020 $1.42 $1.46 April 30, 2021 $1.44 $1.48 May 30, 2021 $1.45 $1.49 July 31, 2021 $1.50 $1.50 RequiredPrepare Chicken Ltd.'s journal entries to reflect the above assuming that:a. the hedge is a cash flow hedge, andb. the hedge is a fair value hedge.
- Tunisia sold to Ireland a Rolex watch for Php5,000,000.00. Ireland then issued a promissory note to Tunisia promising to pay the money within 90 days. Unknown to Tunisia and Ireland, a law was passed a month before the sale that prohibits and declares void any agreement to sell Rolex in the country. If Denmark acquired the note in good faith and for value, may he enforce payment on it? a. No, since it was not Denmark who bought the Rolex. b. Yes, since he is a holder in due course of a note which is distinct from the sale of Rolex. c. Yes, since he is a holder in due course and Tunisia and Ireland were not aware of the law that prohibited the sale of Rolex. d. No, since the law declared void the contract on which the promissory note was founded.A promissory note states, on its face: "I, Saxony, promise to pay Bavaria the amount of Php 18,000.00 eight days after completion of the on-going construction of my house. Signed, Saxony." Is the note negotiable? a. Yes, since it is payable at a fixed period after the occurrence of a specified event. b. No, since it is payable at a fixed period after the occurrence of an event which may not happen. c. Yes, since it is payable at a fixed period or determinable future time. d. No, since it should be payable at a fixed period before the occurrence of a specified event.XYZ Corp, has carried out transactions denominated in foreign currency during the financial year ended 31 October 2019 and has conducted foreign operations through a foreign entity. Its functional and presentation currency is the US dollar. XYZ purchased inventory from a foreign supplier for Euros 8 million on 31 July 2019, the trade payable was still outstanding and the inventory were still held by XYZ Corp. XYZ Corp sold its products to a foreign customer for Euros 4 million on 31 July 2019 and received payment for the products in euros on 31 October 2019. Additionally, XYZ Corp purchase investment property on 1 November 2018 for Euros 28 million. At 31 October 2019, the investment property had a fair value of Euros 24 million. The company uses the fair value model in accounting for its investment properties. XYZ would like advice on how to treat this transactions in the financial statement for the year ended 31 October 2019. Exchange rates Date Euro:$ Average Rate for Year to…
- On October 1, 2020, Mud Co., a U.S. company, purchased parts from Terra, a Portuguese company, with payment due on December 1, 2020. If Mud's 2020 operating income included no foreign exchange gain or loss, the transaction could have _____. A. Been denominated in U.S. dollars. B. Generated a foreign exchange gain to be reported as a deferred charge on the balance sheet. C. Resulted in an extraordinary gain. D. Generated a foreign exchange loss to be reported as a separate component of stockholders' equity.A bill of exchange has Naples as drawer, Venice as drawee and Palermo as payee. The bill was then indorsed to Rome, Rome to Milan, and Milan to Bologna. Bologna, the current holder presented the bill to Venice for acceptance. Venice accepted but, as it later turned out, Naples is a fictitious person. Is Venice freed from liability? a. Yes, if Venice was not aware of that fact at the time of acceptance. b. Yes, since a bill of exchange with a fictitious drawer is void and inexistent. c. No, since by accepting, Venice admits the existence of the drawer. d. No, since by accepting, Venice warrants that he is solvent.The ABC Corporation is a U.S. exporter that invoices its exports to the United Kingdom in British pounds. If it expects that the pound will depreciate against the dollar in the future, should it hedge its exports with a forward contract? Explain.