exchange rates

Get your Assignment in a Minimum of 3 hours

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

Free Inquiry Order A Paper Now Cost Estimate

On October 15, our company has executed a purchase order for new equipment to be purchased from a supplier in Denmark for a purchase price of DKK 1.2 million. The equipment is deliverable on March 31. In order to hedge the commitment to pay DKK1.2 million, we enter into a forward exchange contract on October 15 to receive DKK1.8 million on March 31 at an exchange rate of $0.17: DKK1. Assume the following exchange rates:

Date

Spot Rates

Forward Rates

October 15

$0.15:DKK1

$0.17:DKK1

December 31

$0.16:DKK1

$0.18:DKK1

March 31

$0.20:DKK1

n/a

Required: Prepare the journal entries to record the following:

· Execution of the purchase order and forward contract

· Adjusting entries at December 31

· Receipt of equipment and payment to equipment supplier on March 31.

"Is this question part of your assignment? We Can Help!"

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Get Started