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    On November 1 Year 1 Alexandria Company Sold Merchandise To

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    Alexandria Company sold merchandise to a foreign customer on November 1, Year 1 for 100,000 francs to be paid on April 30, Year 2. At the same time, Alexandria Company entered into a six-month forward contract to sell 100,000 francs to hedge the foreign currency receivable. The forward contract is designated as a cash flow hedge.

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    On November 1 Year 1 Alexandria Company Sold Merchandise To

    Uploaded by

    Freelance Worker
    156 views1 page
    Alexandria Company sold merchandise to a foreign customer on November 1, Year 1 for 100,000 francs to be paid on April 30, Year 2. At the same time, Alexandria Company entered into a six-month forward contract to sell 100,000 francs to hedge the foreign currency receivable. The forward contract is designated as a cash flow hedge.

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    Alexandria Company sold merchandise to a foreign customer on November 1, Year 1 for 100,000 francs to be paid on April 30, Year 2. At the same time, Alexandria Company entered into a six-month forward contract to sell 100,000 francs to hedge the foreign currency receivable. The forward contract is designated as a cash flow hedge.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    156 views1 page

    On November 1 Year 1 Alexandria Company Sold Merchandise To

    Uploaded by

    Freelance Worker
    Alexandria Company sold merchandise to a foreign customer on November 1, Year 1 for 100,000 francs to be paid on April 30, Year 2. At the same time, Alexandria Company entered into a six-month forward contract to sell 100,000 francs to hedge the foreign currency receivable. The forward contract is designated as a cash flow hedge.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    On November 1 Year 1 Alexandria Company sold

    merchandise to #3421
    On November 1, Year 1, Alexandria Company sold merchandise to a foreign customer for
    100,000 francs with payment to be received on April 30, Year 2. At the date of sale, Alexandria
    Company entered into a six-month forward contract to sell 100,000 francs. The forward contract
    is properly designated as a cash flow hedge of a foreign currency receivable. Relevant
    exchange rates for the franc are:Alexandria Company's incremental borrowing rate is 12
    percent. The present value factor for four months at an annual interest rate of 12 percent (1
    percent per month) is 0.9610.Required:Prepare all journal entries, including December 31
    adjusting entries, to record the sale and forward contract. What is the impact on net income in
    Year 1? What is the impact on net income in Year 2?View Solution:
    On November 1 Year 1 Alexandria Company sold merchandise to

    ANSWER
    http://paperinstant.com/downloads/on-november-1-year-1-alexandria-company-sold-
    merchandise-to/

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