Alman Company sold pharmaceuticals to a Swedish company for 200,000 kronor (SKr) on April 20, with settlement to be in 60 days. On the same date, Alman entered into a 60-day forward contract to sell 200,000 SKr at a forward rate of 1 SKr= $0.167 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were April 20 June 19 Required: a. Prepare all necessary entries related to the foreign transaction and the forward contract. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Skr 1 - $0.170 Skr 1 $0.165 View transaction list Journal entry worksheet < 1 2 3 Record the sales on account. Note: Enter debits before credits. 4 5 6 7

Alman Company sold pharmaceuticals to a Swedish company for 200,000 kronor (SKr) on April 20, with settlement to be in 60 days. On the same date, Alman entered into a 60-day forward contract to sell 200,000 SKr at a forward rate of 1 SKr= $0.167 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were April 20 June 19 Required: a. Prepare all necessary entries related to the foreign transaction and the forward contract. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Skr 1 - $0.170 Skr 1 $0.165 View transaction list Journal entry worksheet < 1 2 3 Record the sales on account. Note: Enter debits before credits. 4 5 6 7

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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