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.

---

Definitions:

Astyanax

A genus of small freshwater fish widely used in scientific research, particularly in studies of development and genetics.

Parallel Evolution

Refers to independent evolution of similar traits, starting from a similar ancestral condition.

Placental Mammals

Mammals that give birth to live, fully developed young that have been nourished in the womb via a placenta.

Marsupial Mammals

A group of mammals characterized by giving birth to relatively undeveloped offspring which typically continue to develop in a pouch on the mother's body.