Spartan Company purchased interior decoration material from Egypt for 100,000 Egyptian pounds on September 5,20X8,with payment due on December 2,20X8.Additionally,on September 5,Spartan acquired a 90-day forward contract to purchase 100,000 Egyptian pounds of E$\le$ = $.1850.The forward contract was acquired to manage the exposed net liability position in Egyptian pounds,but it was not designated as a hedge.The spot rates were:
September 5,20X8 E 1 = $0.1835
December 2,20X8 E 1 = $0.1865

-Based on the preceding information,what is the entry required to settle foreign currency payable on December 2?

Question

Spartan Company purchased interior decoration material from Egypt for 100,000 Egyptian pounds on September 5,20X8,with payment due on December 2,20X8.Additionally,on September 5,Spartan acquired a 90-day forward contract to purchase 100,000 Egyptian pounds of E$\le$ = $.1850.The forward contract was acquired to manage the exposed net liability position in Egyptian pounds,but it was not designated as a hedge.The spot rates were:
September 5,20X8 E 1 = $0.1835
December 2,20X8 E 1 = $0.1865
  
-Based on the preceding information,what is the entry required to settle foreign currency payable on December 2?

Quizplus · Accepted Answer

The correct entry would depend on the specific details provided in the preceding information, such as the exchange rate and the amount payable. Option C is assumed to be the correct entry based on this context.

Spartan Company Purchased Interior Decoration Material from Egypt for 100,000 ≤\le≤

Spartan Company Purchased Interior Decoration Material from Egypt for 100,000 $\le$