Consider the Following Information

question 15

Essay

Consider the following information:
1.On November 1,2017,a U.S.firm contracts to sell equipment (with an asking price of 500,000 pesos)in Mexico.The firm will take delivery and will pay for the equipment on February 1,2018.
2.On November 1,2017,the company enters into a forward contract to sell 500,000 pesos for $0.0948 on February 1,2018.
3.Spot rates and the forward rates for February 1,2018,settlement were as follows (dollars per peso):
4.On February 1,the equipment was sold for 500,000 pesos.The cost of the equipment was $20,000.
Required:
Prepare all journal entries needed on November 1,December 31,and February 1 to account for the forward contract,the firm commitment,and the transaction to sell the equipment.

---

Definitions:

Transference

In psychoanalysis, the projection of feelings, desires, or expectations originally associated with one person onto another, especially the therapist.

Virtual Reality Exposure

A psychological treatment that uses virtual reality technology to expose patients to their fears or traumatic memories in a controlled environment.

Behavior Modification

The use of learning techniques, such as conditioning, to change or improve behavior.

Client-Centered Therapy

A psychotherapy approach developed by Carl Rogers that emphasizes the therapist's empathy and unconditional positive regard towards the client to facilitate personal growth.