Required Prepare journal entries to record the above transactions 1
Q: Which one of the following amounts represents the maximum amount of income on which CCT may claim…
A: Small business deduction is the amount of deduction which is allowed to the taxpayer of the Canadian…
Q: An account which would be classified as a current liability is
A: Dividend payable is a current liability but form of common stock is not a current liability.…
Q: Stute whether the following are non-current assets, current assets, owner's equty. non-current…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: The semiconductor business of the Calfornia Microtech Corporation qualities as a component of the…
A: Introduction Income from continuing operations accounts for income from regular business activity,…
Q: On April 5, Timothy established an interior decorating business, Tim's Design, with a cash investmen…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Unit VIII question 3 part a
A: When the actual price paid for materials used in manufacturing differs from the normal price for the…
Q: MC12 Mega Company and its subsidiaries have a provided you with a list of property items they own:…
A: S. No. Particulars Amount (P) 1 Land held by Mega for undetermined future use 10 million 2…
Q: Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in…
A: The quick ratio is a part of the liquidity ratio. The liquidity ratio indicates the liquidity of the…
Q: Unit viii question 13
A: In flexible budgeting, budgeted expenses will be adjusted as per the actual production. This is to…
Q: Re Time left 0:40:15 Chambers Company sells glass vases at a wholesale price of $250 per unit.…
A: Contribution margin = selling price - Variable cost
Q: Matchless Computer Company has been purchasing carrying cases for its portable computers at a…
A: Differential Analysis Make Carrying Case (Alt. 1) or Buy Carrying Case (Alt. 2) February'24…
Q: How much gain sh
A: In like kind exchange the property should be exchanged only for the same class of property. The…
Q: Abc company had a total overhead of 360,000 and selling and administrative expense of 140,000 for…
A: Overheads are general costs that are spent for all products or services produced. These are not…
Q: Unit V question 8 part a
A: The work in process represents the cost of jobs that are not completed yet and are in process at end…
Q: Eva received $77,000 in compensation payments from JAZZ Corporation during 2021. Eva incurred…
A: Computation of Tax liability of EVA Particulars Amount ($) Received 77,000 less :…
Q: create 2 problems (required must vary) for each type of depreciation. 1. Straight Line Method
A: As per our protocol we provide solution to the one question only but as you have asked multiple…
Q: 2. the provision for doubtful debt is to equal 2% of trade receivables 3. Inventory at 31st December…
A: Income Statement The purpose of preparing the income statement is to know the net income which are…
Q: Tiger Woods makes the following construction related expenditures: 450,000 on January 1 2021…
A: January 1 2021 4,50,000 Oct 1 2021 3,00,000 Dec 1 2021 6,00,000 March…
Q: ratios listed on table a for each year (2020 & 2021): a. For each ratio includes the formula with…
A: The answers have been mentioned below.
Q: Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon,…
A: In the context of the given question, Dean has $ 500 to invest in two companies. If he invests $ 500…
Q: A company has $1,357 in inventory, $4,800 in net fixed assets, $646 in accounts receivable, $286 in…
A: As per the accounting equation concept, total assets are equal to the total liabilities and equity.…
Q: The Primus Corp. began the year with $7,451 in its long-term debt account and ended the year with…
A: Long-term debt refers to a company's debts and other obligations that are not due within one year of…
Q: what is the cost of the new animal shelter? Shuler Dog Care Co. wants to finance a new animal…
A: Interest rate = 6% Annual deposit for first 4 years = $24000 Annual deposit for next 4 years =…
Q: Production cost ($/unit) $60.00 ry holding cost ($/unit) $2.30 Lost sales cost ($/unit) $95.00…
A: Total cost refers to the total expenses born by a company while manufacturing some products.
Q: Analytical procedures are often performed on accounting ratios. Discuss the usefulness of analytical…
A: It is mandatory for the auditor to conduct a risk assessment to identify and assess the risk of data…
Q: Singer Company adjusts its account annually. Below is extracted from the trial balance of the…
A: Allowance Method - Under allowance, the method company makes provision of uncollectible accounts at…
Q: Let there be $100 new deposit in a bank. a) Calculate the money multiplier for a reserve requirement…
A: The required reserve is the percentage of deposit that Bank hold as a deserve and it is required to…
Q: Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows:…
A: GIVEN Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were…
Q: Mr Adam wants to sell his car, which he purchased at RM 85,000 after using it for three years. The…
A: The double-declining balance method is one in which the depreciation is more in the early years and…
Q: A A partnership begins ils Ilrst yeɛ Ог орегаtions with the following capital balances: Winston,…
A: The partnership comes into existence when two or more partners agree to do the business and share…
Q: Chris's House of Music wants to purchase Transposelt, a system that transposes any song in its…
A: The accounting rate of return is a ratio of net income earned on an investment. Net income is net…
Q: The credit manager of Sweet Sales Inc. has gathered the following information about the company's…
A: Journal Entries- Journal entries refer to the certified book of a corporation which is used to…
Q: Company B is currently applying manufacturing overhead based on budgeted direct labor hours.…
A: Calculation of Total Expected cost for product Y Amount (In $) Direct Material Cost…
Q: Rona Company used the perpetual inventory system. The inventory transactions for August of the…
A: Inventory valuation: Inventory valuation is the process applied by a manufacturing company to…
Q: JJJ Co. was incorporated on January 1, 20x1. The following were the transactions during the year:…
A: ANSWER JJJ Co was incorporation on January 1, 20x1. The following were the transactions during the…
Q: Tax law contains a two-pronged system for taxing the US source income of foreign persons. Briefly…
A: under the domestic law of USA if the non-descident in the united state is for 90 days or less than…
Q: 1. Net income was $52,000. 2. A gain of $9,000 was recorded on the disposal of a small parcel of…
A: Statement of Cash flows:- It is the statement that records the movement of cash inflows and outflows…
Q: Based on the information below, 1) complete the April 15th payroll register for Mansouri Medical…
A: FICA indicates standard tax rates for social security (SST) and Medicare tax rates to be 6.2% (with…
Q: The company is thinking of using Activity based Costing system and has identifies four activities.…
A: Formula: Activity rate for setup cost pool = Expected Manufacturing Overhead Cost/ Expected number…
Q: Collins Company is preparing its master budget for April. Use the given estimates to determine the…
A: Total sales = Sales of territory A + Sales of territory B Units produced = Sales + ending inventory…
Q: D.J., who is single, had $15,000 in social security benefits in 2021. D.J's modified adjusted gross…
A: Social security benefits are taxable if your "provisional or total income is above the base amount.…
Q: $ 69,550 $ 173,875X 13 3.1 X 32.5
A: Calculation of Average Operating Assets for Charlie Division Net Operating income = Average…
Q: Tax rate is 20 % STCG is 320000 Salary income is 150000 Maximum exemption is $170000 Tax liability…
A: Formula: Tax liability amount = Taxable income x Tax rate
Q: Should I use cash-basis or accrual accounting?
A: Which one of above accounting method you should use would depend on the nature and the size of the…
Q: Belinda, a 55 year old single woman with no dependents, has a $75,000 gröup term life insurance…
A: Answer:- Term life insurance definition:- A term insurance policy is one of the most basic and…
Q: 956 Exercise Company X has a capital budget of OMR1,000,000. Company has the following options to…
A: Formula: Net Present Value = Present Value of Cash inflows – Initial investment Present Value of…
Q: 9) Omanı Company reported equity of RO 130,000 on March 1. During the month, The Company generated…
A: Formula: Ending equity balance = Beginning balance + Additional investments + Net income - Dividends…
Q: Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year…
A: A balance sheet is a representation of an individual's personal or corporation's financial balances…
Q: rning the accounts receivable:
A: The cash receipts from account receivable help in determining the cash to be received from the…
Q: Which of the following statements is true about agency efficiency? a. The costs from vertical…
A: The correct answer for the above mentioned question is given in the following steps for your…
a) On January 1, 2022, Dymaxium Inc. a Canadian company, sold Alberta beef to a foreign company for FC$200,000, with payment due on March 1, 2008. ON the same date, Dymaxium entered into a forward contract with the bank to sell the foreign currency (FC) it will receive on March 1, 2022 at a rate of FC1=C$1.16. The forward contract was designed as a fair value hedge of the FC receivable.
On March 1, 2022, Dymaxium received the payment from the foreign company and settled the forward contract with the bank.
Spot exchange rates were as follows:
January 1, 2022 FC1 = C$1.18
March 1, 2022 FC1 = C$1.19
Required
Prepare
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On 1 November 2022, Long Ltd enters a contract to buy inventory from an overseas supplier, with the inventory to be delivered in six months' time. A sum of US$1 000000 is payable on delivery of the inventory. Long Ltd does not want to be exposed to potential losses associated with changes in the exchange rate. As a result, Long Ltd takes out a forward rate contract with Board Bank to purchase US$1 000000 in six months' time at an exchange rate of A$1.00 = US$0.70. REQUIRED Explain who now bears the risks associated with changes in the exchange rate, and calculate how much Long Ltd will ultimately pay for the inventoOn 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 $1.50 RequiredPrepare Chicken Ltd.'s journal entries to reflect the above assuming that:a. the hedge is a cash flow hedge, andb. the hedge is a fair value hedge.Myway Company sold equipment to a Canadian company for 100,000 Canadian dollars (C$) on January 1, 20X9, with settlement to be in 60 days. On the same date, Alman entered into a 60-day forward contract to sell 100,000 Canadian dollars at a forward rate of 1 C$ = $.94 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were: January 1 (1 C$ = $0945); March 1 (1C$ = $0.930). Based on the preceding information, the entry to revalue foreign currency payable to current U.S. dollar value on March 1 will have: A. a credit to Foreign Currency Transaction Gain for $1,500. B. a debit to Foreign Currency Transaction Loss for $2,500. C. a debit to Foreign Currency Transaction Loss for $1,500. D. a credit to Foreign Currency Transaction Gain for $1,000.
- Wolters Corporation is a U.S. corporation that purchased 50,000 chocolate bars from a foreign manufacturer on March 1, 2024 for 80,000 foreign currency units, to be paid on April 30, 2024. On March 1, 2024 Wolters also entered into a forward contract to purchase 80,000 foreign currency units on April 30, 2024. Wolters has a March 31 year end. Exchange rates are as follows: Date Spot Rate Forward Rate 3/1/24 $0.69 $0.65 3/31/24 $0.61 $0.63 4/30/24 $0.66 $0.66 Required: Prepare the journal entries to record the transactions through April 30, 2024. March 31 is the fiscal period end. Ignore the split between spot gain/loss and time value. On September 1, 2019 Philips corporation sold merchandise to a foreign customer for 300,000 Brazilian real with payment to be received on March 1, 2020. At the date of sale, Philips entered into a six month forward contract to sell 300,000 reals. The forward contract was properly designated as a fair value hedge. The following exchange rates apply: Date Spot rate Forward rate (to March 1, 2020) September 1, 2019 $0.46 $ 0.49 December 31, 2019 0.50 0.52 March 1, 2020 0.54 Philips’ incremental borrowing rate is 12%. The present value factor at an annual interest rate of 12% is .9610. What journal entry should Philips prepare to record the value of the forward contract on December…Q2. (a) Setia Bhd purchased a plant from a foreign entity for USD 18 million on 31 May 2020 when the exchange rate was USD2.00 to RM1. The entity also sells goods to a foreign customer for USD10.5 million on 30 September 2020, when the exchange rate was USD1.75 to RM1. At the entity’s year end of 31 December 2020, both amounts are still outstanding and have not been paid. The closing exchange rate was USD1.50 to RM1. Required: (ii) Show the journal entries to show the effects of the above transactions. Note: Round to the nearest RM.
- ABC Company has the Philippine peso as its functional currency. The entity expects to purchase goods from USA for $50,000 on March 31, 2023. Accordingly, the entity is exposed to a foreign currency risk. If the dollar increases before the purchase takes place, the entity will have to pay more pesos to obtain the $50,000 that it will have to pay for the goods. On October 1, 2022, the entity entered into a foreign currency forward contract with a bank speculator to purchased $50,000 in six months for a fixed amount of P2,050,000 or P41 to $1. This forward contract is designated as cash flow hedge of the entity’s exposure to increase in dollar exchange rate. On December 31, 2022, the exchange rate is P42 to $1 and on March 31, 2023, the exchange rate is P44 to $1. How much is the derivative asset (liability) on October 1, 2022?1- Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied: DateSpot RateForward Rate to Jan.15December 16, 2021$0.00082 $0.00089 December 31, 2021 0.00080 0.00083 January 15, 2022 0.00086 0.00086 Assuming a forward contract was not entered into, what would be the net impact on Jackson Corp.'s 2021 income statement related to this transaction? Multiple Choice $600 (gain). $600 (loss). $400 (gain). $400 (loss). $0On December 1, 2020, Venice Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,410,000 pesos on March 1, 2021. The following U.S. dollar per peso exchange rates apply: Date Spot Rate Forward Rate(to March 1, 2021) December 1, 2020 $ 0.026 $ 0.029 December 31, 2020 0.028 0.031 March 1, 2021 0.032 N/A Ignoring present values, Which of the following correctly describes the manner in which Venice Company will report the forward contract on its December 31, 2020, balance sheet? As an asset in the amount of $1,410 As a liability in the amount of $1,410 As an asset in the amount of $2,820 As a liability in the amount of $2,820
- On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which requires the New Zealand Company to construct an item of machinery for Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery is completed on 1 June 2021 and shipped FOB Auckland on that date. The debt is unpaid at 30 June 2020, which is also Holmes Ltd’s reporting date. The exchange rates at the relevant dates are: 1 March 2020 A$1.00 = NZ$1.20 30 June 2020 A$1.00 = NZ$1.30 1 June 2021 A$1.00 = NZ$1.25 Required: a) Determine the amount in AUD, as at: • 1 March 2020; and • 30 June 2020. b) Prepare the journal entries for the above dates, up to 1 June 2021,showing the amount of exchange gain or loss. ThanksOn 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which requires the New Zealand Company to construct an item of machinery for Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery is completed on 1 June 2021 and shipped FOB Auckland on that date. The debt is unpaid at 30 June 2020, which is also Holmes Ltd’s reporting date. The exchange rates at the relevant dates are: 1 March 2020 A$1.00 = NZ$1.20 30 June 2020 A$1.00 = NZ$1.30 1 June 2021 A$1.00 = NZ$1.25 Required: a) Determine the amount in AUD, as at: • 1 March 2020; and • 30 June 2020. b) Prepare the journal entries for the above dates, up to 1 June 2021, showing the amount of exchange gain or loss. show all your workings