Valix Finacc vol 1 Problem 14-20

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 14-20

   2008

Dec.    31   Forward contract receivable                                              50,000

                        Unrealized gain – forward contract ($50,000 x P1)                                50,000

   2009

March 31   Forward contract receivable                                            100,000

                        Unrealized gain – forward contract ($50,000 x P2)                              100,000

31   Cash                                                                                 150,000

                        Forward contract receivable                                                              150,000

            31   Purchases ($50,000 x P43)                                                2,150,000

                        Cash                                                                                                  2,150,000

            31   Unrealized gain – forward contract                                 150,000

                        Purchases                                                                                            150,000