On November 1, 2016, Platte Corporation, a calendar-year U.S. Corporation, invested in a speculative contract to purchase 700,000 euros on January 31, 2017, from a German brokerage firm. Platte agreed to buy 700,000 euros at a fixed price of $1.46 per euro. The brokerage firm agreed to send 700,000 euros to Platte on January 31, 2017. The spot rates for euros are: Required:
Prepare the journal entries that Platte would record on November 1, December 31, and January 31.

Question

On November 1, 2016, Platte Corporation, a calendar-year U.S. Corporation, invested in a speculative contract to purchase 700,000 euros on January 31, 2017, from a German brokerage firm. Platte agreed to buy 700,000 euros at a fixed price of $1.46 per euro. The brokerage firm agreed to send 700,000 euros to Platte on January 31, 2017. The spot rates for euros are:  Required:
Prepare the journal entries that Platte would record on November 1, December 31, and January 31.

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The Answer of On November 1, 2016, Platte Corporation, a calendar-year U.S. Corporation, invested in a speculative contract to purchase 700,000 euros on January 31, 2017, from a German brokerage firm. Platte agreed to buy 700,000 euros at a fixed price of $1.46 per euro. The brokerage firm agreed to send 700,000 euros to Platte on January 31, 2017. The spot rates for euros are:  Required:
Prepare the journal entries that Platte would record on November 1, December 31, and January 31.

On November 1, 2016, Platte Corporation, a Calendar-Year U