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  • Exercise 12-14

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    jood aljuhanai
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    This document summarizes foreign exchange transactions for a firm between December 2008 and March 2009. In December 2008, the firm had a receivable of $94,800 from an exchange dealer and a payable of $94,800 to the dealer due to a $1 million forward contract at a rate of 0.0948. On December 31, the firm recorded a foreign exchange gain of $400 due to a change in the forward rate to 0.0004. On March 1, the firm recorded a foreign exchange loss of $300 due to the forward rate changing to 0.0003.

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    This document summarizes foreign exchange transactions for a firm between December 2008 and March 2009. In December 2008, the firm had a receivable of $94,800 from an exchange dealer and a payable of $94,800 to the dealer due to a $1 million forward contract at a rate of 0.0948. On December 31, the firm recorded a foreign exchange gain of $400 due to a change in the forward rate to 0.0004. On March 1, the firm recorded a foreign exchange loss of $300 due to the forward rate changing to 0.0003.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    1 views1 page

    Exercise 12-14

    Uploaded by

    jood aljuhanai
    This document summarizes foreign exchange transactions for a firm between December 2008 and March 2009. In December 2008, the firm had a receivable of $94,800 from an exchange dealer and a payable of $94,800 to the dealer due to a $1 million forward contract at a rate of 0.0948. On December 31, the firm recorded a foreign exchange gain of $400 due to a change in the forward rate to 0.0004. On March 1, the firm recorded a foreign exchange loss of $300 due to the forward rate changing to 0.0003.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    0.

    0004
    -
    ] - =

    <

    = 0.0003

    1 Dec .
    2008 .

    Dollars receivable from exchange dealer 94,800


    Fc payable to exchange dealer 94,800
    (1,000,000×0.0948)

    31 Dec 2008 .
    .

    -
    Fc payable from exchange dealer 400

    foreign exchange gain 400

    ( \ ,
    ooo ,
    ooo ✗ 0.0004 )

    foreign exchange loss 400

    firm commitment .
    400

    1- Mar 2009 .

    foreign exchange loss 300

    Fc
    payable from
    exchange dealer 300

    ( 1
    ,
    ooo
    ,
    ooo ✗ 0-0003 )

    -
    firm commitment 300

    foreign exchange gain 300

    -
    investment in Fc 94,700
    firm commitment 100

    Sales 94,800

    (1,000,000×0.0947)
    - Cash 94,800
    Fc
    payable to
    exchange dealer 94,700
    investment in Fc 94,700
    Dollars receivable from 94 800
    ,

    exchange dealer .

    -
    Cost of goods sold .

    40,000
    inventory . 40,000

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