Barnes Company Entered into a Forward Contract During the Current

question 17

Multiple Choice

Barnes Company entered into a forward contract during the current year to hedge the risk of a material supply cost increase.Based on the current market,at year-end the present value of the estimated amount they will have to pay in ten months is $750,000.What entry would be recorded at year-end closing,assuming that no amount was recorded for this contract until this time?

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Definitions:

Unconscious Efforts

Actions or endeavors carried out without deliberate thought or awareness, often driven by instinct or deep-seated habits.

Anxiety

An emotional health issue characterized by severe anxiety, worry, or fear, impacting one's ability to carry out everyday tasks.

Work Schedule

A specific plan that outlines the days and hours an individual is expected to work, including start and end times, breaks, and any flexibilities offered.

Supervisor

An individual in charge of overseeing the work of others, often responsible for providing leadership, guidance, and ensuring the quality of work.