Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 5

Gains and Losses Journalizing Exchange Rate
Euroam is a U.S. corporation that purchases motors from European manufacturers for distribution in the United States. A recent purchase involved the following events:

Instructions
a. Prepare in general journal form the entries necessary to record the preceding events.
b. Compute the exchange rate (price) of the Swiss franc in U.S. dollars on January 15.
c. Explain a hedging technique that Euroam might have used to protect itself from the possibility of losses resulting from a significant increase in the exchange rate for the Swiss franc.