Denizen Corporation
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1. On December 1, 2008, Denizen Corporation entered into a 120-day forward contract to purchase 20,000 Canadian dollars (C$). Denizen%u2019s fiscal year ends on December 31. The forward contract was to hedge a firm commitment agreement made on December 1, 2008, to purchase electronic goods on January 30, 2009, with payment due on March 31, 2009. The derivative is designated as a fair value hedge. The direct exchange rates follow:
Date | Spot Rate | Forward Rate for March 31, 2009 |
December 1, 2008 | 0.940 | 0.944 |
December 31, 2008 | 0.945 | 0.947 |
January 30, 2009 | 0.943 | 0.943 |
March 31, 2009 | 0.941 |
Prepare all journal entries for Denizen Corporation
- 8 years ago
Denizen Corporation A+ Tutorial use as Guide
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