On 11/1/06, Impox entered into a 90-day FX forward to hedge 1,000,000 pounds owed to a British vendor. Direct exchange rates for the pound are as follows:
Required:
a. Prepare all journal entries relating to the FX forward over the contract's life.
b. Prepare the journal entry to record the payment to the British customer.

Question

On 11/1/06, Impox entered into a 90-day FX forward to hedge 1,000,000 pounds owed to a British vendor. Direct exchange rates for the pound are as follows:
  Required:
a. Prepare all journal entries relating to the FX forward over the contract's life.
b. Prepare the journal entry to record the payment to the British customer.

Quizplus · Accepted Answer

The Answer of On 11/1/06, Impox entered into a 90-day FX forward to hedge 1,000,000 pounds owed to a British vendor. Direct exchange rates for the pound are as follows:
  Required:
a. Prepare all journal entries relating to the FX forward over the contract's life.
b. Prepare the journal entry to record the payment to the British customer.

On 11/1/06, Impox Entered into a 90-Day FX Forward to Hedge