On December 1,2008,Secure Company Bought a 90-Day Forward Contract to Purchase

question 21

Essay

On December 1,2008,Secure Company bought a 90-day forward contract to purchase 200,000 euros (€)at a forward rate of €1 = $1.35 when the spot rate was $1.33.Other exchange rates were as follows:
Required
1)Prepare all journal entries related to Secure Company's foreign currency speculation from December 1,2008,through March 1,2009,assuming the fiscal year ends on December 31,2008.
2)Did the company gain or lose on its purchase of the forward contract?

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Definitions:

Motor Cortex

A region of the brain in the frontal lobe involved in planning, controlling, and executing voluntary movements.

Orbitofrontal Lesions

Damage to the orbitofrontal cortex, which can alter personality and inhibit social and emotional behavior, leading to deficits in decision-making and impulse control.

Dorsolateral Prefrontal Cortex

A region of the brain that plays a crucial role in executive functions, such as working memory, cognitive flexibility, and planning.

Social Responses

Reactions or behaviors in individuals that are influenced by the presence, actions, or expectations of others.