On June 1, Cagle Co. received a signed agreement to set inventory for w650,000 The sale would take place in 90 days Cagle immedutely signed a 90-day forward contact to sell the yer as soon as they are received The spot rate on June 1 was t-$0.003986, and the 90-day forward rate was at-50004021 At what amount would Cagle record the Forward Contract on June 1 Multiple Choice O 10 $2.500 90 $2.275.00
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- Rahe Corp. sold a customer service contract with a price of $20,000 to Peterson Warehousing. Rahe Corp. offered terms of 2/10, n/30 and expects Peterson to pay within the discount period. Required: Prepare the journal entry to record the sale using the net method. Prepare the journal entry assuming the payment is made within 10 days (within the discount period).Castro Industries purchased $21,600 of merchandise on February 1, 2020, subject to a trade discount of 5% and with credit terms of 2/15, n/60. It returned $5,000 (gross price before trade or cash discount) on February 4. Castro paid one-half of the outstanding obligation on February 13. The remaining amount was paid 60 days after the date of purchase. Prepare the journal entries Castro would make for the purchase, the return, and the two payments using (1) the gross method and (2) the net method. Castro uses a periodic inventory system.SorCo. Inc. has just entered into a sale agreement with a customer. The contract is for $600,000. However, the payments will be made as follows: 1 August 20X1 on date of delivery $400,000; 1 August 20X2 $100,000 and 1 August 20X3 $100,000. SorCo has estimated that the interest rate required for this customer is 8%. SorCo follows IFRS. Required: Prepare the journal entry required to record the sale on 1 August 20X1 and the receipt of cash on 1 August 20X2 and 20X3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to the nearest whole dollar.)
- On June 30, 2018, the Esquire Company sold some merchandise to a customer for $30,000 and agreed toaccept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $30,000 on March31, 2019. The 8% rate is appropriate in this situation. Esquire views the financing component of this contract assignificant.Required:1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the costof the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection.2. What is the effective interest rate on the note?On June 1 Hammer Company purchased inventory from a foreignsupplier at a price of 75,000 FCU (FCU is “foreign currency units”)Hammer will make payment in three months on September 1.On June 1, Hammer entered into a forward contractmaturing on September 1 as a fair value hedgeof its FCU lliability.Prepare all journal entries, including adjusting entries, to recordthe transaction and the forward contract.Date Spot rate Forward rate*June 1 $0.80 $0.85June 30 $0.83 $0.84Sept. 1 $0.86*Forward rate is for a contract written on June 1 to mature on September 1.(Disregard the impact of any interest factor or discount rate.) please provide table? first journal entry is no entry.On June 1 Hammer Company purchased inventory from a foreignsupplier at a price of 75,000 FCU (FCU is “foreign currency units”)Hammer will make payment in three months on September 1.On June 1, Hammer entered into a forward contractmaturing on September 1 as a fair value hedgeof its FCU lliability.Prepare all journal entries, including adjusting entries, to recordthe transaction and the forward contract.Date Spot rate Forward rate*June 1 $0.80 $0.85June 30 $0.83 $0.84Sept. 1 $0.86*Forward rate is for a contract written on June 1 to mature on September 1.(Disregard the impact of any interest factor or discount rate.) first entry is no entry. just a memo.
- Record journal entries for the following transactions of Wind Solutions.Jan. 1, 2018 Issued a $2,350,100 note to customer Solar Plex as terms of a merchandise sale. The merchandise’s cost to Wind Solutions is $1,002,650. Note contract terms included a 24-month maturity date, and a 2.1% annual interest rate.Dec. 31, 2018 Wind Solutions records interest accumulated for 2018.Dec. 31, 2019 Wind Solutions converts Solar Plex’s dishonored note into account receivable. This includes accumulated interest for the 24-month period.Mar. 8, 2020 Wind Solutions sells the outstanding debt from Solar Plex to a collection agency at 25% of the accounts receivable valueRecord journal entries for the following transactions of Wind Solutions. Jan. 1, 2018 Issued a $2,351,100 note to customer Solar Plex as terms of a merchandise sale. The merchandise’s cost to Wind Solutions is $1,006,650.Note contract terms included a 24-month maturity date, and a 2.1% annual interest rate. Dec. 31, 2018 Wind Solutions records interest accumulated for 2018. Dec. 31, 2019 Wind Solutions converts Solar Plex’s dishonored note into account receivable. This includes accumulated interest for the 24-month period. March 8, 2020 Wind Solutions sells the outstanding debt from Solar Plex to a collection agency at 25% of the accounts receivable value. If an amount box does not require an entry, leave it blank. If required, round your answers to two decimal places. Jan. 1, 2018 - Record sale Notes Receivable: Solar Plex Notes Receivable: Solar Plex Sales Revenue Sales Revenue Jan. 1, 2018 - Cost of sale Cost of Goods Sold Cost of Goods Sold…On May 15, 2020, the Gizon Books acquiredresale of books on account with a list price of P108,000. Butuan Publishing, the supplier allowed a 15% trade discount as well as credit terms of 2/10, n/30. Guzon paid the invoice in full on May 20, 2019.
- Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on May 10, 2019. Cass manufactured the goods at a cost of $33,000. The contract is signed on April 15, 2019, at which time Dearborn pays Cass $25,000. Cass delivers the goods on May 10, 2019, and Dearborn pays the final $25,000 on that date. Required: 1. What is the transaction price? 2. Prepare Cass’s journal entries related to the contract with Dearborn.The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2023. Wang uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Ren to Wang and a net payment is made. The agreement stipulates that Ren is to receive a 15% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses. June 1 June 5 June 30 June 30 (a) Wang ships merchandise costing $455,000 on consignment to Ren Stores. Wang pays the freight of $5,000 for the above shipment of June 1. Summary entry for the month of June: Ren sells half of the merchandise for $600,000 cash. Ren notifies Wang that 50% of the merchandise has been sold for $600,000 and remits a cheque for the amount due under the consignment agreement. Wang records the receipt of the cheque from Ren. Prepare the journal entries necessary on the books of Wang. (Credit account…On October 6, 2018, the Elgin Corporation signed a purchase commitment to purchase inventory for $60,000on or before March 31, 2019. The company’s fiscal year-end is December 31. The contract was exercised onMarch 21, 2019, and the inventory was purchased for cash at the contract price. On the purchase date of March21, the market price of the inventory was $54,000. The market price of the inventory on December 31, 2018, was$56,000. The company uses a perpetual inventory system.Required:1. Prepare the necessary adjusting journal entry (if any is required) on December 31, 2018.2. Prepare the journal entry to record the purchase on March 21, 2019