Mod 3
Sleek Solutions
act506_spreadsheet_mod_08_discussion_2.xlsxHedge Instrument
| 11/1/13 | 12/31/13 | 1/31/14 | |||
| Spot Rate | $1.20 | $1.25 | $1.30 | ||
| Forward Rate | $1.23 | $1.26 | $1.30 | ||
| HedgeCo is interested in purchasing 1,000 of Product Z from OverSeas Inc. HedgeCo is very concerned about two issues: 1) that the price of Product Z will change and 2) the exchange rate will make an unfavorable change before the purchase takes place. Select a hedge and explain your selection. Use the exchange rates above to make your journal entry. Select appropriate account names for your journal entry. | |||||
| Hedge Type | |||||
| Reasoning for Selection | |||||
| Journal Entry | Account Name | DR | CR | Decscribe Financial Statement Effect of each account movement | |
