Crane Company was incorporated in Delaware in 2017. On November 2, 2024, the controller of the company entered into a forwardcontract to sell 36,000 British pounds for $1.5920 on March 1, 2025. The following exchange rates were quoted on the indicateddates:Forward RateSpot Rate March 1 DeliveryNovember 2, 2024$1.60211.5920December 31, 20241.58201.58March 1, 20251.6543Crane Company's fiscal year-end is December 31.(a)Assume that the forward contract was entered into as a hedge against an exposed foreign currency receivable balance in theamount of £36,000. Prepare the journal entries that would be made by Crane Company on the dates listed below. (Credit accounttitles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for theaccount titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,125. List all debit entries before credit entries.)1.2.November 2-to record the sale of the goods on account for £36,000 and to record the forward contract.December 31-to adjust the accounts related to the exposed asset and forward contract at fiscal year-end.3.March 1-to adjust the accounts related to the exposed asset and forward contract and to record the settlement of thereceivable and delivery of the pounds to the exchange dealer.DateAccount Titles and ExplanationDebitCredit

Journal entries:Journal entry records the accounting transactions of a business in a journal book.…

Crane Company was incorporated in Delaware in 2017. On November 2, 2024, the controller of the company entered into a forward contract to sell 36,000 British pounds for $1.5920 on March 1, 2025. The following exchange rates were quoted on the indicated dates:

Crane Company was incorporated in Delaware in 2017. On November 2, 2024, the controller of the company entered into a forward contract to sell 36,000 British pounds for $1.5920 on March 1, 2025. The following exchange rates were quoted on the indicated dates:

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Crane Company was incorporated in Delaware in 2017. On November 2, 2024, the controller of the company entered into a forward
contract to sell 36,000 British pounds for $1.5920 on March 1, 2025. The following exchange rates were quoted on the indicated
dates:
Forward Rate
Spot Rate March 1 Delivery
November 2, 2024
$1.6021
1.5920
December 31, 2024
1.5820
1.58
March 1, 2025
1.6543
Crane Company's fiscal year-end is December 31.
(a)
Assume that the forward contract was entered into as a hedge against an exposed foreign currency receivable balance in the
amount of £36,000. Prepare the journal entries that would be made by Crane Company on the dates listed below. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the
account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,125. List all debit entries before credit entries.)
1.
2.
November 2-to record the sale of the goods on account for £36,000 and to record the forward contract.
December 31-to adjust the accounts related to the exposed asset and forward contract at fiscal year-end.
3.
March 1-to adjust the accounts related to the exposed asset and forward contract and to record the settlement of the
receivable and delivery of the pounds to the exchange dealer.
Date
Account Titles and Explanation
Debit
Credit

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