The Following Information Pertains to Questions

question 8

Essay

The following information pertains to questions
Canada Corp.sells raw lumber to a number of countries around the world.On December 1,2013 the company shipped some lumber to a client in Japan.The selling price was established at 500,000 Yen with payment to be received on March 1,2014.
On December 3,2013 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of 1Yen=$1.185CDN.
Canada Corp received the payment from its Japanese client on March 1,2014.Canada Corp's year end is on December 31.
Selected spot rates were as follows:
-Prepare a partial Balance Sheet for Canada Corp on December 31,2013 showing the account receivable from the Japanese client as well as the accounts associated with the hedge.

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Definitions:

Contingency Theory

A theory that proposes the effectiveness of leadership is contingent upon the interaction of the leader's traits, behaviors, and the situation at hand.

Robert Rescorla

A psychologist known for his work on the theory of classical conditioning, particularly the role of cognitive processes in associative learning.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, elicits a conditioned response.

Thorndike's Law of Effect

A psychological principle stating that behaviors followed by satisfying consequences are likely to be repeated, while those followed by unpleasant consequences are less likely to be repeated.