User Account

All Pages

Prepare journal entries for Apple to record the transaction

Assignment Help Accounting Basics
Reference no: EM133059248

Question - On 1 March Apple Ltd sells to Samsung Ltd (overseas firm) USD500,000 of equipment. The equipment is to be air deliver immediately (delivery 1 March) and the payment date is 1 August. Apple becomes worried about exchange rate and on 30 April purchases an option to sell USD500,000 at an exchange rate 0.73 for delivery on 1 August. Apple pays $13,500 for the option at this time. At 30 June, the option value is at $4,500.

The exchange rate is at:

1 March AUD1.00 = USD0.7200

30 June AUD1.00 = USD0.7050

1 August AUD1.00 = USD0.7450

Required - Prepare journal entries for Apple to record the transaction above including adjustments at year end. Apple does not designated option as a hedge (round to nearest dollar).

Reference no: EM133059248

Questions Cloud

Levels of strategy and strategy implementation : Distinguish between different types and levels of strategy and strategy implementation. Is this strategic alliance successful? Justify.
Analyses your personal communication experiences : Recognize advanced knowledge and skills required in written, oral, and interpersonal communication to address complex business problems
What would be the discount : If a company purchased food for $5,000 and terms were 3/10 n 30 and the company paid in full after 7 days then a) what would be the discount
Prepare journal entries for Apple to record the transaction : Prepare journal entries for Apple to record the transaction above including adjustments at year end. Apple does not designated option as a hedge
Ethical leadership is form of leadership : Ethical leadership is a form of leadership in which individuals demonstrate conduct for the common good that is acceptable and appropriate in every area of life
Prepare all journal entries and compute ending balances : Other data related to the pension plan for 2020: Service cost 315,000. Prepare all journal entries and compute ending balances for PBO & PA
What would be Xs and Ys share : X and Y invest $100,000 and $50,000 respectively in a partnership. What would be X's & Y's share of the following net income
Mission and vision statements for health care organizations : What is the importance of creating strong mission and vision statements for health care organizations? Provide examples.

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