Helvetia CorpThe Account Was Hedged by Bouchard Through a 30-Day Forward

Question

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The Answer is December 15, 20X7

\begin{array} { c } \text { Accounts receivable }&19,480 \\text { Sales } ( 20,000 * 9740 )&&19,480 \end{array}

December 15, 20X7

\begin{array} { l } \text { Forward receivable }&19,600 \\text { Forward payable }&&19,600 \\text { 20,000 CHF x 0.98 }\end{array}

December 31, 20X7

\begin{array}{llr} \text { Exchange gains and loses } &80\ \text { Accounts receivable } &&80\ \text {$ 20,000 \mathrm{CHF} \times(0,97-0,974) $ } &\end{array}

\begin{array}{llr} \text { Forward payable } &140\ \text { Exchange gains and losses } &&140\ \text { $ 20,000 \mathrm{CHF} \times(0.973-0.98) $ } & \end{array}

January 14, 20X8

\begin{array}{lll}\text { Cash }[20,000 \times(.972)] & 19,440 & \\text { Exchange gains and losses } & & 40 \\text { A/R }[19,480-80] & &19,400 \& &\end{array}

\begin{array}{ll}\text { Cash } & 19,600 \\text { Forward receivable } && 19,600\end{array}

\begin{array}{lll}\text { Forward payable } & 19,460 & \\text { Exchange gains and losses } & & 20 \\text { Cash } 20,000 \times 0.972 & & 19,440\end{array}

Helvetia Corp The Account Was Hedged by Bouchard Through a 30-Day Forward