The Following Information Pertains to Questions

question 36

Essay

The following information pertains to questions
Compucat is a Canadian manufacturing company that produces inexpensive personal and laptop computers.The company has been generating progressively more of its sales from foreign markets.During 2013,the company started purchasing most of its components from a supplier in Germany.
To deal with the uncertainty associated with foreign exchange fluctuations,all of Compucat's foreign currency denominated receivables and payables are hedged with contracts with the company's bank.Compucat's year-end is on December 31.The following transactions took place in 2013:
On September 1,2013,Compucat purchased components from its German supplier for 100,000 Euros.On that date AMC entered into a forward contract for 100,000 Euros at the 60 day forward rate of 1Euro=$1.50 CDN.Compucat paid its supplier in full on December 1,2013.
On December 1,2013 Compucat also shipped a batch of laptop computers to an American client for $250,000US.The invoice required that Compucat receive its payment in full by January 31,2013.On that date,the company entered into a forward contract for $250,000US at the two-month forward rate of $1US=$1.25CDN.
The dates and exchange rates relevant to these transactions are shown below.
-Prepare the 2013 journal entries to record the above transactions.In addition,prepare any adjusting journal entries that you deem necessary.

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Definitions:

Person-centered Therapy

A counseling approach emphasizing the client's perspective, promoting self-discovery, and valuing their potential for personal growth.

Empirical Research

A way of gaining knowledge by means of direct observation or experience, employing systematic and scientifically valid methods to gather data.

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve behaviors and replace undesirable behaviors with more desirable ones.

Desirable Behaviors

Desirable behaviors are actions considered favorable or appropriate within a certain context or society, often encouraged and reinforced through social norms and by rewards.