On December 1, 2014, SMC entered into a transaction to import raw materials from a foreign country. The account is to be settled March 1 with the payment of 50,000 euros. The spot rate for euros on December 1 was $1.4/euro and on March 1 was $1.44/euro. If SMC does not hedge the payable, raw materials will be recorded on the books on March 1, 2015 at what amount? a. $70,000 b. none of these c. $72,000 d. 50,000 euros

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Our firm purchased equipment for US$100,000 on Dec 1, 2015. Our year end is December 31, and the payable is due on Jan 31, 2016. On December 1, 2015, we entered into a forward exchange contract with the bank to provide us with the US dollars on January 31, 2016.   The following rates were in effect: Forward Rates: Dec1,2015; 60 day forward rate US$1= CDN$1.152 Dec 31, 2015; 30 day forward rate US$1 = CDN$ 1.162   Spot rates Dec 1, 2015 US$1 = CDN$ 1.130 Dec 31, 2015 US$1 = CDN$ 1.16 Jan 31, 2016 US$1 = CDN$ 1.210   Prepare all the journal entries arising from this transaction, from original sale to final settlement. Answer within 40mins,it would be really helpful!!

On Oct 1, 2015, Short company ordered some equipment from a supplier for 200,000 euros. Delivery and payment will occur on Nov 30, 2016. The spot rates on Oct 1 and Nov 30 are $1.50 and $1.30 If the forward contract is acquired, what is the overall exchange gain or loss? a. $30,000 gain O b. $10,000 gain 50 O d. $10,000 loss