Required A Required B Required C Assume that on October 1, 2024, Stilton entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, the company agreed to sell CAD 150,000 in three months at a forward exchange rate of $0.75/CAD 1. Prepare the journal entries required by this forward contract. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 3 4 Date 10/01 12/31 12/31 12/31 No journal entry required Forward contract Translation adjustment (positive) Foreign currency (CAD) Cash Cash General Journal Foreign currency (CAD) Forward contract Debit 1,500 112,500 15 Credit 1,500 112,500 112,500 Show less A
Required A Required B Required C Assume that on October 1, 2024, Stilton entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, the company agreed to sell CAD 150,000 in three months at a forward exchange rate of $0.75/CAD 1. Prepare the journal entries required by this forward contract. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 3 4 Date 10/01 12/31 12/31 12/31 No journal entry required Forward contract Translation adjustment (positive) Foreign currency (CAD) Cash Cash General Journal Foreign currency (CAD) Forward contract Debit 1,500 112,500 15 Credit 1,500 112,500 112,500 Show less A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Transcribed Image Text:Required A Required B Required C
Assume that on October 1, 2024, Stilton entered into a forward exchange contract to hedge the net investment in this
subsidiary. On that date, the company agreed to sell CAD 150,000 in three months at a forward exchange rate of $0.75/CAD
1. Prepare the journal entries required by this forward contract.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
1
2
3
4
Date
10/01
12/31
12/31
12/31
No journal entry required
Forward contract
Translation adjustment (positive)
Foreign currency (CAD)
Cash
Cash
General Journal
Foreign currency (CAD)
Forward contract
Debit
1,500
112,500
15
Credit
1,500
112,500
112,500
Show less A
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