advanced accounting Advanced accounting chapter 9 answers.doc

advanced accounting Advanced accounting chapter 9 answers 导读：就爱阅读网友为您分享以下“Advanced accounting chapter 9 answers”的资讯，希望对您有所帮助，感谢您对92的支持! Chapter 09 - Foreign Currency Transactions and Hedging Foreign Exchange Risk Loss on Forward Contract (3,000) Premium Revenue Total Impact on net income over both periods: $40,500 + $1,000 = $(41,500); equal to cash inflow. 31. (continued) b. Fair Value Hedge 12/1/11 Accounts Receivable (K) [20,000 x $2.00] $40,000 Sales No entry for the forward contract. 12/31/11 Accounts Receivable (K) $2,000 Foreign Exchange Gain [20,000 x ($2.10 – $2.00)] Loss on Forward Contract $2,450.75 Forward contract [20,000 x ($2.075 – $2.20) = $2,500 x .9803 = $2,450.75] Impact on 2011 income: Sales $40,000.00 Foreign exchange gain 2,000.00 Loss on forward contract Total 3/1/12 Accounts Receivable (K) $3,000 Foreign Exchange Gain [20,000 x ($2.25 – $2.10)] Loss on Forward Contract $1,049.25 Forward Contract [20,000 x (2.25 – $2.075) = $3,500 – 2,450.75 = $1,049.25] Foreign Currency (K) [20,000 x $2.25] $45,000 Accounts Receivable (K) Cash [20,000 x $2.075] $41,500 Forward Contract 3,500 Foreign Currency (K)