please help me to solve this question Use the following information on the U.S. dollar value of the euro to answer the question,Forward Rate forSpot Rate April 30, 2024 Delivery$1.130$1,1403.145October 20, 2023November 1, 2023December 31, 2023April 30, 20241.1481.1001.170On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100,000 on April 30, 2024 On October 30, theUS company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the company receives €100,000from the customer and sells it using the forward contract. The company's accounting year ends December 31.What net gain or loss is recognized in 2023, in addition to sales revenue?Select one:a $500 net lossb, $800 net gainc. $800 net lossd $500 net gain1.170O Previous Save AnswersNext Ⓒ

Introduction: Foreign currency transaction gain or loss is the change in the foreign currency…

Answered: Use the following information on the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Use the following information on the U.S. dollar value of the pound sterling to answer the question. Forward Rate for Spot Rate August 16, 2024 Delivery $1.380 $1.375 1.390 1.400 May 16, 2024 June 30, 2024 August 16, 2024 On May 16, 2024, a U.S. company takes delivery of £100,000 in merchandise from a U.K. supplier. The company will pay the supplier £100,000 on August 16. On May 16, the company also enters a forward contract to buy £100,000 on August 16, 2024. On August 16, the company purchases £100,000 using the forward contract, and pays the supplier. The company's accounting year ends June 30, and it sells the merchandise in September 2024. What is the net effect on fiscal 2025 income of exchange rate changes due to the merchandise purchase and the forward contract? Select one: 1,388 1,400 a. $2,200 net gain b. No effect c. $200 net loss d. $200 net gain ←
Let’s suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold all of them in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019. Below, please find the exchange rate information: Dec 1, 2018: 1.2 $/€. Dec 31, 2018: 1.5 $/€ Feb 1, 2019: 1.0 $/€ What was net income for 2018 and 2019, respectively? Group of answer choices A) -$50, $150 B) $250, -100 C)$200, $100 D)$250, $100
Use the following information on the U.S. dollar value of the euro to answer the question. Forward Rate for Spot Rate April 30, 2024 Delivery $1.130 $1,140 October 20, 2023 November 1, 2023 December 31, 2023 April 30, 2024 Select one: 1.148 1.100 1.170 On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100.000 on April 30; 2024 On October 30, the US company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? esc a $500 net loss b. 1800 net gain, c. $800 net loss d. $500 net gain 3.145 1165 1.170 * 8: MacBook Air & FL 40 # 6-41 16 W 19 F M m
On July 1, 2020, a Filipino entity whose functional currency is Philippine Peso purchased on account inventories at a cost of $100 to be paid on June 30, 2021. On October 1, 2020, the said inventories were soid on account by the Filipino entity at a selling price of $150 to be collected on September 30, 2021. The following direct foreign exchange rates are given: July 1,2020 October 1, 2020 December 31, 2020 Buying Spot P40 P42 P45 Selling Spot P50 P48 P52 56. What is the gross profit to be reported by the Filipino entity for the year ended December 31, 2020? a. 1,300 b. 2,100 c. 2,400 d. 3,200 57. what is the net foreign currency gain or loss for the year ended December 31, 2020? a. 150 net gain b. 250 net gain c. (350) net loss d. (50) net loss
Foreign currency transactions Melbourne Ltd purchased goods from France on 3 April 2022 on credit shipped FOB Paris. The cost of good is Euro 500,000 and outstanding as of 31 April 2021. On 3 April 2022, the exchange rate is A$1.00 = Euro 0.67. On 30 April 2022, exchange rate is A$1.00 = Euro 0.66 REQUIRED Provide the accounting entries necessary to account for the above purchase transaction for the month ending 30 April 2022.
You are provided with the following exchange rate quotations: American Terms Bank quotations British pounds Bid Ask $1.9712 $1.9717 Euros $1.4738 $1.4742 Use the information in the table above to calculate the bid price of pounds in terms of euro (€/£). One of the following answers will be correct: а. 1.3371 b. 1.3378 c. 0.7475 d. 0.7479
Brandt Corp. (a U.S.-based company) sold parts to a South Korean customer on December 1, 2020, with payment of 10 million South Korean won to be received on March 31, 2021. The following exchange rates apply: Date Spot Rate Forward Rate(to March 31, 2021) December 1, 2020 $ 0.0035 $ 0.0034 December 31, 2020 0.0033 0.0032 March 31, 2021 0.0038 N/A 1. Assuming that Brandt did not hedge his foreign exchange risk, how much foreign exchange gain or loss should it report on its 2020 income statement with regard to this transaction? a. 3000 gain b. 2000 loss c. 5000 gain d. 1000 loss 2. Assuming that Brandt entered into a forward contract to sell 10 million South Korean won on December 1, 2020, as a fair value hedge of a foreign currency receivable, what is the net impact on its net income in 2020 resulting from a fluctuation in the value of the won? Brandt amortizes forward points on a monthly basis using a straight-line method. Ignore…
May I get part C and D Given below are a set of foreign exchange quotes for several currencies against the Australiandollar as of August 5, 2020.Australian Dollar Exchange RatesCurrency Sell/buyUS, dollar 0.7143/0.7143UK, pound 0.5458/0.5459China, yuan Renminbi 4.9872/4.9907Hong Kong, dollar 5.5349/5.5364India, rupee 53.572/53.669Japan, yen 75.70/75.70Malaysia, ringgit 3.0104/3.0139Philippines, peso 34.953/35.135South Africa, rand 12.2272/12. 2340Switzerland, franc 0.6551/0.6551Thailand, baht 22.1892/22.2317(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next monthand wishes to purchase 10,000,000 Baht. How many Australian dollars does she require,assuming she is able to use the above quotes?(b) What are the direct quotes for the following currencies with respect to the Australian dollar?(i) UK pound(ii) Chinese Renminbi(iii) Indian rupee(iv) Malaysian ringgit(v) South African rand (c) Create a table showing the bid and ask quotes of each of…
1 . PL Co purchased goods on credit from a US supplier costing $US 225,000 on 5th June 2020 when the exchange rate was A$1 = US0.69 . On 30 June 2020, balance date , the exchange rate was A$1 = US0.72 . PL Co paid the US supplier on 7th July 2020 when the exchange rate was A$1 = 0.74. Required : Prepare the journal entries for the above
On December 20, 2023, Momeler Company (a U.S.-based company) sold parts to a foreign customer at a price of 195,000 rials. Payment is received on January 10, 2024. Currency exchange rates are as follows: Date December 20, 2023 December 31, 2023 January 10, 2024 U.S. Dollar per Rial. a. The rial receivable exchange b. The nial receivable exchange $1.29 1.26 1.22 Required: a. How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeler's 2023 income statement? b. How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeier's 2024 income statement? in U.S. dollar value, resulting in a foreign of in 2023 in U.S. dollar value, resulting in a foreign of in 2024
Today is 1 July and the spot exchange rate for AUD 1.00 = EUR 0.7000. You have purchased equipment from a European supplier and the invoice amount is EUR 10,000. a) If you paid the invoice today, what is the AUD cost of the purchase?
Which one of the following best describes an agreement you make today to exchange U.S. dollars for British pounds three months from now? Multiple Choice Forward trade Spot trade Arbitrage transaction Cross-rate exchange Eurocurrency transaction

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