1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sav [38]
3 years ago
11

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 134,000 kites (the local curren

cy unit) and liabilities of 58,000. During this Initial year of operation, the subsidiary reported a profit of 28,000 kites. It distributed two dividends, each for 5,200 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:
January 1, 2017 (start of business) $0.71
March 1, 2017 0.69
Weighted average rate for 2017 0.68
October 1, 2017 0.67
December 31, 2017 0.66
a. Assume that the kite is this subsidiary's functional currency. What translation adjustment would Board report for the year 2017
b. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net Investment In this subsidiary. On that date, Board agreed to sell 220,000 kites In three months at a forward exchange rate of $0.67/1 kite. Prepare the Journal entries required by this forward contract.
Business
1 answer:
Mama L [17]3 years ago
3 0

Answer: Please refer to Explanation

Explanation:

1 October 2017

No entry required as contract not yet exercised

31st December 2017

DR Forward Contract (220,000*(0.67-0.66)) $2,200

CR Translation Adjustment $2,200

(To record change in value of forward contract )

31st December 2017

DR Foreign Currency (Kites) (220,000*0.66) $145,200

CR Cash $145,200

(To record purchase of foreign currency)

31st December 2017

DR Cash ( 145,200 + 2,200) $147,400

CR Foreign Currency (Kites) $145,200

CR Forward Contract $2,200

(To record delivery of foreign currency and forward contract execution)

You might be interested in
A ________ management system often consists of modules such as budget planning, debt management, travel and expense management,
sergejj [24]

Answer:

Financial

Explanation:

Financial management refers to managing an organization or program's resources to meet it's goals and objectives as quickly as possible by making use of resources to carry out planned activities. A financial management system is the approach employed by an organization to govern its income, expenses and assets with the sole purpose of attaining sustability.

8 0
4 years ago
Joe was tired of working for other people. He had an idea to start his own ice cream business and wanted to set it up where he a
d1i1m1o1n [39]

Answer:

Authority - Responsibility Balance & Incentive Development.

Explanation:

Authority refers to the power to command, give orders to somebody. And enjoying the position of having right to get it obeyed.

Responsibility refers to being in a position of accountability, answerability for an allocated task or job & its performance.

For Eg : A manager  given responsibility to complete a task of production targets achievement, is also given authority to command the entire staff at the production site.

Joe had problem while working for someone else that :- he had responsibility to complete employers allocated task, but may be not given enough authority to do so, thats why he felt he is being 'commanded by, working for' someone else. Also, he doesn't owe the rewards of his acts, so lacks incentive.

Being an entrepreneur will entitle him with managerial responsibilities, but at the same time will also give him higher authority to take his own independent decisions. And, he is himself responsible for his acts, will bear losses or enjoy profits for himself. So, it also incentivises him to work for himself.

8 0
3 years ago
Definition of a stakeholder
MatroZZZ [7]
1.
(in gambling) an independent party with whom each of those who make a wager deposits the money or counters wagered.
2.
a person with an interest or concern in something, especially a business.
6 0
3 years ago
In ________ organizational cultures, more individuality is shown through the organization's rules being less strictly applied.
kap26 [50]

Answer:

weak

Explanation:

An organization's culture describe the behavior of an organization. It comprised of the beliefs and values that should be shared in the organization

In the case when there is a weak organization culture so here the rules of the organization should be less strictly followed instead of more strictly followed as it is a weak organization structure

Therefore the weak should be the term that should be applied in the current situation

3 0
3 years ago
Theo chocolate is ready to take their products abroad. Deborah, Theo chief marketing officer, has decided that the company needs
gayaneshka [121]

Answer: B) export strategy

Explanation:

3 0
3 years ago
Other questions:
  • Mark is interested in becoming a bio
    7·1 answer
  • Which of these states one of the opportunity costs of attending college?
    13·1 answer
  • Who is one of the first salem residents to be accused of witchcraft in this play?
    12·1 answer
  • Emily purchased a building to store inventory for her business. The purchase price was $760,000. Emily also paid legal fees of $
    15·1 answer
  • s late at night before your scheduled vacation. You are all packed and ready to go to bed.You get a phone call from the plant as
    7·1 answer
  • Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 mill
    13·1 answer
  • Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 300 34
    15·1 answer
  • Countries official reserve assets are mostly composed of A. the​ country's own currency. B. physical goods which can be bartered
    12·1 answer
  • Three highly similar and competitive income-producing properties within two blocks of the subject property have sold this month.
    14·1 answer
  • Computer Wholesalers restores and resells notebook computers on eBay. It originally acquires the notebook computers from corpora
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!