ACC 308 On November 1, 2015, Americo, Corporation purchased wine

| April 14, 2018

On November 1, 2015, Americo, Corporation purchased wine on credit from Venezia Company for €400,000. Payment is not due for90 days. Thus, the transaction will be settled on January 30, 2016. On November 1, 2015, Americo, Corporation also entered into a90-day forward contract to purchase €400,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows:SPOTFORWARD11/1/2015$ 1.40$ 1.42(90 days)12/31/2015$ 1.35$ 1.34(30 days)1/30/2016$ 1.37REQUIRED: Prepare the required information below for both the original (underlying) transaction and the related forward contract.BE SURE TO CLEARLY SHOW ALL OF YOUR WORK.JOURNALENTRIES ATNOVEMBER1, 2015 (TRANSACTION DATE):Foreign Currency Transaction: Forward Contract:DECEMBER31, 2015 (YEAR-END): JOURNALENTRIES:Foreign Currency Transaction: Forward Contract:FINANCIAL STATEMENT PRESENTATIONINCOME STATEMENT: BALANCE SHEET:JOURNALENTRIES AT JANUARY30, 2016 (SETTLEMENT DATE):Foreign Currency Transaction: Forward Contract:On November 1, 2015, Americo, Corporation sold wine on credit to Venezia Company for €400,000. Payment is not due for 90 days. Thus, the transaction will be settled on January 30, 2016. On November 1, 2015, Americo, Corporation also entered into a 90-day forward contract to sell €400,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows:SPOTFORWARD11/1/2015$ 1.40$ 1.42(90 days)12/31/2015$ 1.35$ 1.34(30 days)1/30/2016$ 1.37REQUIRED: Prepare the required information below for both the original (underlying) transaction and the related forward contract.BE SURE TO CLEARLY SHOW ALL OF YOUR WORK.JOURNALENTRIES ATNOVEMBER1, 2015 (TRANSACTION DATE):Foreign Currency Transaction: Forward Contract:DECEMBER31, 2015 (YEAR-END): JOURNALENTRIES:Foreign Currency Transaction: Forward Contract:FINANCIAL STATEMENT PRESENTATIONINCOME STATEMENT: BALANCE SHEET:JOURNALENTRIES AT JANUARY30, 2016 (SETTLEMENT DATE):Foreign Currency Transaction: Forward Contract

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now