Slickton Corporation,a U.S.holding company,enters into a forward contract on November 1,2014 to speculate in Singapore dollars (S$).The forward contract requires Slickton to sell 1,000,000 Singapore dollars to the exchange broker on January 30,2015.Net settlement is not permitted.Relevant exchange rates for the Singapore dollar are listed below:
Required:
Prepare the journal entries required by Slickton on November 1,2014,December 31,2014 (year end),and January 30,2015.

Question

Slickton Corporation,a U.S.holding company,enters into a forward contract on November 1,2014 to speculate in Singapore dollars (S$).The forward contract requires Slickton to sell 1,000,000 Singapore dollars to the exchange broker on January 30,2015.Net settlement is not permitted.Relevant exchange rates for the Singapore dollar are listed below:
  Required:
Prepare the journal entries required by Slickton on November 1,2014,December 31,2014 (year end),and January 30,2015.

Quizplus · Accepted Answer

The Answer of Slickton Corporation,a U.S.holding company,enters into a forward contract on November 1,2014 to speculate in Singapore dollars (S$).The forward contract requires Slickton to sell 1,000,000 Singapore dollars to the exchange broker on January 30,2015.Net settlement is not permitted.Relevant exchange rates for the Singapore dollar are listed below:
  Required:
Prepare the journal entries required by Slickton on November 1,2014,December 31,2014 (year end),and January 30,2015.