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

question 61

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:

Amygdala

A region of the brain involved in processing emotions, especially fear and aggression, and plays a significant role in forming emotional memories.

Production And Governance

Production and governance involve the processes of creating goods or services and overseeing their distribution and regulation in a community or organization.

Expression Of Emotion

The outward display of feelings through facial expressions, body language, and vocal tones.

Cognitive Appraisal

The process by which an individual evaluates and interprets a situation, influencing their emotional and psychological response to it.