User Account

All Pages

Determine the appropriate quarterly balances

Assignment Help Accounting Basics
Reference no: EM131817299

Question - Kaiser Exporters buys used medical equipment and sell sit to various foreign health care institutions. One June 15, the company committed to sell medical equipment to a foreign hospital fro 800,000 FC. The equipment, with a cost of $325,000, was shipped to the customer on August 15 with terms FOB shipping point and payment due on October 15. At the time of the commitment, Kaiser acquired a forward contract to sell 800,000 FC in 120 days. Selected spot and forward rates are as follows:

June 15- spot rate $.50, forward rate .510

June 30- spot rate $.485, forward rate .49

August 15- spot rate .48, forward rate .475

September 30- spot rate .47, forward rate .468

The relevant discount rate is 6% and changes in value of the firm commitment are measured as changse in the forward rate over time.

Assuming that financial statements are prepared for the second and third quarters, identify all relevant income statement and balance sheet accounts for the above transactions and determine the appropriate quarterly balances.

Reference no: EM131817299

Questions Cloud

Write a memo to the cio : Write a memo to the CIO that describes how to implement your information system into the organization.
Company must make in order to recover its investment : The uniform amount per quarter that the company must make in order to recover its investment in 6 years is $
Recommend for the physician : Which of the two EHR products would you recommend for the physician? Explain why.
Regulations to qualify for social security disability : Should there be stricter regulations to qualify for Social Security Disability? Explain your response, include supporting evidence for your view.
Determine the appropriate quarterly balances : Identify all relevant income statement and balance sheet accounts for the above transactions and determine the appropriate quarterly balances
Capacities on the egress and ingress sides : In Networking, How do you resolve huge difference between the capacities on the egress and ingress sides?
Performance management used by nonprofit organization : What are strategies for performance management used by a nonprofit organization?
Delimit the atm problem by creating a problem diagram : Delimit the ATM problem by creating a problem diagram using Visio or an equivalent such as Dia. The diagram must show system components that are relevant.
Kindly share your thoughts and comments : It would just make sense for Apple to come up with a speaker/assistant for me to purchase. Kindly share your thoughts and comments.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd