8. On March 15, 2020, Concord Corporation entered into a forward contract with the local bank to purchase ¥86,000 (RMB) for $16,340 Canadian dollars in two months' time. On March 31, Concord's year-end, the fair value of the forward contract (representing the present value of the contract's future cash flows) was $490.
8. On March 15, 2020, Concord Corporation entered into a forward contract with the local bank to purchase ¥86,000 (RMB) for $16,340 Canadian dollars in two months' time. On March 31, Concord's year-end, the fair value of the forward contract (representing the present value of the contract's future cash flows) was $490.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:8. On March 15, 2020, Concord
Corporation entered into a forward
contract with the local bank to
purchase ¥86,000 (RMB) for $16,340
Canadian dollars in two months' time.
On March 31, Concord's year-end, the
fair value of the forward contract
(representing the present value of the
contract's future cash flows) was $490.
Prepare the journal entries on March
15 and March 31, 2020.
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