5. Weston Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Weston Company acquired the following trading securities: Date Company # of Shares Price per Share 8/15 X Company 1,500 $40 9/25 Y Company 1,250 25 9/30 Z Company 1,000 20 On November 10th, Weston Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values: Company FMV per Share X Company $45 Y Company 20 Z Company 30 What the total dollar values that Weston Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.

Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities:

On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values:

What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.

Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities:

On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values:

What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.

Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities:

On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values:

What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.

AussieGold Ltd., an Australian gold mining company, sells gold to U.S. clients in USD. The company has not hedged its gold price or foreign exchange risk. The current spot exchange rate is AUD$ 1.00 = USD$ 0.677 and the current gold spot price is USD$ 1522 per ounce.

Which of the following scenarios represents the best possible outcome for AussieGold Ltd. over the next year?

a)AUD weakens relative to the USD, and the gold spot price rises.

b)AUD strengthens relative to the USD, and the gold spot price rises.

c)AUD weakens relative to the USD, and the gold spot price falls.

d)AUD strengthens relative to the USD, and the gold spot price falls.

e)There is no change in the AUD/USD exchange rate and no change in the gold spot price.

On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 120,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 120,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply:

Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610.

1. Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract.
2. What is the impact on net income in 2017?
3. What is the impact on net income in 2018?

On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 55,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows:

1. How does the fluctuation in exchange rates affect Butanta's 2017 income statement?
2. How does the fluctuation in exchange rates affect Butanta's 2018 income statement?

On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 135,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows:

1. How does the fluctuation in exchange rates affect Butanta's 2017 income statement?
2. How does the fluctuation in exchange rates affect Butanta's 2018 income statement?

On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 150,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 150,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply:

Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610.

1. Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract.
2. What is the impact on net income in 2017?
3. What is the impact on net income in 2018?

Selco, a U.S. Company, imports and exports tools, shop equipment, and industrial construction supplies. The company uses a periodic inventory system. During April the company entered into the following transactions. All rate quotations are direct exchange rates. April  3 Purchased power tools from a wholesaler in Japan, on account, at an invoice cost of 1,600,000 yen. On this date the exchange rate for the yen was $.0072.  5 Sold hand tools on credit that were manufactured in the U.S. to a retail outlet located in West Germany. The invoice price was $2,800. The exchange rate for euros was $1.25.  9 Sold electric drills on account to a retailer in New Zealand. The invoice price was 16,800 U.S. dollars and the exchange rate for the New Zealand dollar was $.76. 11 Purchased drill bits on account from a manufacturer located in Belgium. The billing was for 801,282 euros. The exchange rate for euro was $1.26. 16 Paid 1,000,000 yen on account to the wholesaler for purchases made on April 3. The exchange rate on this date was $.0067. 18 Settled the accounts payable with the Belgium manufacturer. The exchange rate was $1.28. 22 Received full payment from the New Zealand retailer. The exchange rate was $.74. 30 Completed payment on the April 3 purchase. The exchange rate for yen was $.0078. Required: Prepare journal entries on the books of Selco to record the transactions listed above.