Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 157,000 kites (the local currency unit) and liabilities of 104,000. During this initial year of operation, the subsidiary reported a profit of 51,000 kites. It distributed two dividends, each for 7,500 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:

1. Assume that the kite is this subsidiary’s functional currency. What translation adjustment would Board report for the year 2017?

2. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 210,000 kites in three months at a forward exchange rate of $0.79/1 kite. Prepare the journal entries required by this forward contract.

3. Compute the net translation adjustment for Board to report in accumulated other comprehensive income for the year 2017 under this second set of circumstances.

Lo 9-7, 9-8

37. On October 1, 2020, Mertag Company ( a U.S.-based comany) receives an order from a customer in Poland to deliver goods on January 31,2021, for a price of 1,000,000 Polish zotys (PLN). Mertag enters into a forward contract on October 1, 2020, to sell PLN 1,000,000 in four months ( on January 31, 2021). U.S. dollar-Polis zioty exchange rates are follows:

October 1, 2020 $0.25 $0.29

December 31, 2020 0.28 0.31

January 31, 2021 0.30 N/A

Mertag designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured b referring to changes in the forward rate, and, therefore, forward points are included in assessing hedge effectiveness. Mertag must close its books and prepare financial statements on December 31. Discounting to present value can be ignored.

a. Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment and export sale.

b. Determine the net benefit, if any, realized by Mertag from entering into the forward contract.

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 139,000 kites (the local currency unit) and liabilities of 68,000. During this initial year of operation, the subsidiary reported a profit of 33,000 kites. It distributed two dividends, each for 5,700 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow: January 1, 2017 (start of business) $0.76 March 1, 2017 0.74 Weighted average rate for 2017 0.73 October 1, 2017 0.72 December 31, 2017 0.71 Assume that the kite is this subsidiary’s functional currency. What translation adjustment would Board report for the year 2017? Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 270,000 kites in three months at a forward exchange rate of $0.72/1 kite. Prepare the journal entries required by this forward contract. Compute the net translation adjustment for Board to report in accumulated other comprehensive income for the year 2017 under this second set of circumstances.

Problem 13-1 Bank loan; accrued interest [LO13-2]

Blanton Plastics, a household plastic product manufacturer, borrowed $14 million cash on October 1, 2018, to provide working capital for year-end production. Blanton issued a four-month, 12% promissory note to L&T Bank under a prearranged short-term line of credit. Interest on the note was payable at maturity. Each firm’s fiscal period is the calendar year.
   
Required:
1. Prepare the journal entries to record (a) the issuance of the note by Blanton Plastics and (b) L&T Bank’s receivable on October 1, 2018.
2. Prepare the journal entries by both firms to record all subsequent events related to the note through January 31, 2019.
3. Suppose the face amount of the note was adjusted to include interest (a noninterest-bearing note) and 12% is the bank’s stated discount rate. (a) Prepare the journal entries to record the issuance of the noninterest-bearing note by Blanton Plastics on October 1, 2018, the adjusting entry at December 31, and payment of the note at maturity. (b) What would be the effective interest rate?

Information for Question: The ExpressEspresso Company roasts and sells high quality certified sustainable coffee beans. The final one pound bags of roasted whole coffee beans has two direct materials – coffee beans and packaging. ExpressEspresso is preparing budgets for the 4th quarter ending December 31, 2019. For each requirement below prepare budgets by month for October, November, and December, and a total budget for the quarter.

The previous year’s sales for the corresponding period were:

October 50,000 bags

November 55,000 bags

December 90,000 bags

January 75,000 bags

February 60,000 bags

The company expects the above volume of coffee sales to increase by 8% for the period October 2019 – February 2020. The budgeted selling price for 2019 is $19.50 per bag. The company expects 35% of its sales to be cash (COD) sales. The remaining 65% of sales will be made on credit.

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Question: The company desires to have finished goods inventory on hand at the end of each month equal to 10 percent of the following month's budgeted unit sales. On September 30, 2019, ExpressEspresso expects to have 5,350 bags of roasted coffee on hand.

Prepare a Production budget

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 139,000 kites (the local currency unit) and liabilities of 68,000. During this initial year of operation, the subsidiary reported a profit of 33,000 kites. It distributed two dividends, each for 5,700 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:

1. Assume that the kite is this subsidiary’s functional currency. What translation adjustment would Board report for the year 2017?

2. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 270,000 kites in three months at a forward exchange rate of $0.72/1 kite. Prepare the journal entries required by this forward contract.

3. Compute the net translation adjustment for Board to report in accumulated other comprehensive income for the year 2017 under this second set of circumstances.

Mr. Fulano de Tal Perencejo paid an early $ 2000 for the purchase of a car. Then he paid $ 200 per month for 36 months at 12% interest per year compounded monthly to pay off the rest of the cost of the car. (Value 6 points)

What was the original cost of the car?

What proportion of the payments are interest charges?

One of the key benefits identified early on was that a financial planning practice could:

if the birth rate during the early 2020s were to double from the low rates of earlier decades , what would be the implications in the years 2040 and 2050 for a (a) grocery store , (b) fast food restaurant (c) Canadian armed forces ( d) large metropolitan universities

All questions are HRM related