Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
On Dec. 1, 2011, Jol Company enters into a 90-day forward contract with a rice speculator to purchases 500 tons of rice at $1,000 per ton. Jol enters into this contract in order to hedge a firm purchase commitment. The contract is to be settled net. The spot price of rice at Dec. 1, 2011, is $950. On Dec. 31, 2011, the forward rate is $980 per ton. The contract is settled and rice is purchased on Feb. 28, 2012. The spot and forward rates when the contract is settled are $1,005. Assume the Jol purchases 500 tons of rice on the date of the forward contract's expiration. Assume that this contract has been documented to be an effective hedge. Also assume an appropriate interest rate is 6%.
Required:
1. Prepare the required journal entries to account for this hedge situation and the subsequent rice purchase on: (a) Dec. 1, 2011. (b) Dec. 31, 2011. (c) Feb. 28, 2012.
2. Assume that the rice is subsequent sold by Jol on June 1, 2012, for $1,200 per ton. What journal entries will Jol make on that date?
Evaluate the current competitive environment of Maple Hill Dairy Farm.
journal entries for legal expenses incurred in contesting the insurance settlement.1. 342009 paid the february 2009
Land costing $71,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land?
The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 20,000 units consisted of the following, listed in chronological order of acquisition: Calculate the before-tax ..
Texas Company produces one product that it sells for $50 per unit. In producing that product, Texas Company incurs variable costs of $35 per unit and fixed costs of $400,000. How many units of the product will Texas Company have to produce and sell t..
Explain circumstances under which Randy’s decision would be acceptable under GAAP and circumstances under which it would definitely be unacceptable.
Harris Company’s sales revenue for 2005 was $300,000. Harris has one product that sells for $25 and has variable costs of $18. Fixed costs total $155,000. How many units must Harris sell to break even? Round your answer up to the nearest whole unit.
question several years ago abrams inc. sold 1120000 in bonds to the public. yearly cash interest of 9 100800 was to be
Implementation of the matching principle dealing with expenses creates a problem.
Unger Company uses the perpetual inventory method. Unger sold goods that cost $3,500 for $7,200. If the sale was made to a customer on account, the sale will:
Classification of Cost in Direct material, Direct labor, Overheads etc - Research and development costs incurred by Thomas, manufacturer of derailleurs, brakes, and other component parts for bicycles in its efforts to develop new products.
1 competitive auctions on ebay.com. the ebayauctions contains information on 1972 auctions transacted on ebay.com
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd