On Aug 3, 2019, Gamma Co. enters into a forward contract to buy 50,000 Euros...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On Aug 3, 2019, Gamma Co. enters into a forward contract to buy 50,000 Euros (EUR) for $ 7,600 Canadian (CAD) on September 1, 2019. On August 31, 2019, 50,000 EUR can be purchased for $ 7,000 CAD. On September 1, Gamma Co. settles the contract but doesn't take delivery of the EUR. The entry to record the change in value of the contract on August 31, 2019 is
Dr. Other Comprehensive Loss - $600 // Cr. Derivatives-Financial Assets/Liabilities - $600
Dr. Derivatives-Financial Assets/Liabilities - $600 // Cr. Gain or Loss on Derivatives - $600
Dr. Gain or Loss on Derivatives - $600 // Cr. Derivatives-Financial Assets/Liabilities - $600
No Entry
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
