Journal entries necessary for crane-crane corporation

Reference no: EM13141297

On December 1, 2007, Crane Corporation agreed to purchase a machine to be manufactured by a company in Germany. The purchase price as 1,200,000 German marks. To hedge against fluctuations in the exchange rate, Crane entered into a forward contract on December 1 to buy 1,200,000 marks on April 1, the agreed date of machine delivery, for $.475 per mark. The following exchange rates were quoted:

Forward Rate

Date Spot Rate (Delivery on 4/1)

December 1 .490 .475

December 31 .470 .473

April 1 .485 --

Required:

Prepare journal entries necessary for Crane during 2007 and 2008 to account for the transactions described above.

Reference no: EM13141297

Questions Cloud

The american way of war : During the American Civil War, compare and contrast the warfighting styles of Generals Robert E. Lee and U.S. Grant. Which one do you believed more epitomized what strategist Russell Weigley later called the American Way of War?

Short-term investment basics : During 2010, Barney Company purchased marketable equity securities as a short-term investment and classified them as trading securities. The cost and market value at December 31, 2010, were as follows:

Determining actual quantity of materials : During June, 90,000 units were produced. The standard quantity of material allowed per unit was 2 pounds at a standard cost of $5 per pound. If there was an unfavorable quantity variance of $5,000 for June, the actual quantity of materials used mu..

Construct a left-sided power curve using increments : At α = .05 in a left-sided test, find the β risk and power assuming that the true mean is really 380 square feet per gallon. (b) Construct a left-sided power curve, using increments of 5 square feet (400, 395, 390, 385, 380).

Journal entries necessary for crane-crane corporation : Prepare journal entries necessary for Crane during 2007 and 2008 to account for the transactions described above.

How can you explain the different cdnas : Using a cDNA library, you isolated two different cDNA clones that hybridize with your probe for a nerve growth factor gene. The beginning and ending sequences of the clones are the same by the middle sequence is different. How can you explain the ..

Diamond ltd : Ruby Engineering Pty Ltd [Ruby] was incorporated in 1990 and produced engine components used in the Australian car industry. In 2008 the business and company assets were sold to Diamond Ltd.

What is the chance that the son inherited the disorder : Hungtington disorder is a progressive degeneration of the nervous system that begins at middle age and results in an early death. It is caused by a single autosomal gene mutation that acts in a dominant fashion.

What is a hero? how do others define a hero? : What is a hero? How do others define a hero? How do you define a hero?

User Account

All Pages