Bommarito Corp $\quad C \$ .9740$ December 15,2013 $\quad$ 30 Day Forward

question 55

Essay

Bommarito Corp., a Swiss firm, bought merchandise from Trilis Company of New Brunswick on December 15, 2013 for 20,000 CHF payable on January 14, 2014. Trilis and Bommarito both close their books on December 31. The 20,000 CHF was paid on January 14, 2014. The exchange rates for CHF were:
December 15,2013 spot $\quad C \$ .9740$
December 15,2013 $\quad$ 30 day forward $\quad C \$ .9800$
December $31,2013 \quad \mathrm { C } \$ .9700$
December 31,2013 $\quad$ 14 day forward $\quad \mathrm { C } \$ 9730$
January $14,2014 \quad C \$ 9720$ Required:
A)Provide the journal entries for Bommarito (the buyer)at each of the above dates, as required.
B)Provide the journal entries for Trilis Company (the seller)at each of the above dates as required.

• A)Provide the journal entries for Bommarito (the buyer)at each of the above dates, as required.
• B)Provide the journal entries for Trilis Company (the seller)at each of the above dates as required.

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Definitions:

Discharge

The release or exemption from a contractual obligation or other legal liability.

Obligation to Pay Rent

A legal duty of a tenant to make timely payments to a landlord for the use of a property or space.

Possibility of Reverter

A future interest held by a grantor, or the grantor's successors, that allows the property to revert back if certain conditions are met.

Complementary Estate

Describes property rights or interests that are held by different parties but are necessary to the full use and enjoyment of each other's property.