User Account

All Pages

Prepare any necessary accounting entries

Assignment Help Accounting Basics
Reference no: EM131733044

Problem - Gallagher jewelers use silver in a manufacturing of a large number of its creations. Because of turbulence in the silver markets, Gallagher enters into a cash flow hedge to protect its self from wid= fluctuation in silver prices. Accordingly, Gallagher and National Bank enter into a contract on June 30, 2015 that gives Gallagher the right to purchases 1000 ounces at $150 per ounce. The contract expires February 1, 2016. Gallagher does not bay anything to enter into a contract.

The spot (market) price for silver in December 31, 2015 is $200 per ounce. On January 31, 2016, Gallagher buys 1000 ounces of silver at the market price of $200 per ounce and then settles its contract with National Bank.

Prepare any necessary adjusting entry for when Gallagher closes its books December 31, 2015.

Prepare any necessary accounting entries to reflect Gallagher's purchase of silver and settlement of its contract on January 31, 2016.

Reference no: EM131733044

Questions Cloud

Find the project deadline : find the project deadline that gives this project a 77% chance of on-time completion.
Goal of the firm is to maximize shareholder wealth : Project A has an IRR of 11.4%. Project B has an IRR of 11.1%. Which project should the company choose if the goal of the firm is to maximize shareholder wealth?
Industry to exchange millions of dollars : The trade market allows for this industry to exchange millions of dollars a day through the stock market.
Describe piece of poetry or literature that resonates : Describe a piece of poetry or literature that resonates with you. Describe the type of literature.
Prepare any necessary accounting entries : Prepare any necessary accounting entries to reflect Gallagher's purchase of silver and settlement of its contract on January 31, 2016
Define given terms-stock splits and stock dividends : Stock Splits and Stock Dividends. Bermuda Triangle Corporation (BTC) currently has 465,000 shares of stock outstanding that sell for $86 per share.
Maximize shareholder wealth : Which project should the company choose if the goal of the firm is to maximize shareholder wealth?
Company that he has held shares in for decades : Jamie Lee's father suggested that they purchase stock in a company that he has held shares in for decades. They want to take advantage of the stock tip
What? makes? an ?effective? question : What? makes? an ?effective? question?? Be? sure? to ?discuss?? importance? o f?relevance and ?avoidance? of? potential? bias? in? formulation? of ?meaningful?.

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