Accounting Assignment

journal_entry_template_excel.xlsx

Hedge 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
Hedge Types	Cash Flow Hedge and Foreign Currency Hedge
Reasoning for Selection
Journal Entry	Account Name		DR	CR	Decscribe Financial Statement Effect of each account movement

Instructions: Perform all quantitative tests for segment reportability. Show all calculatons within the cells of this worksheet (no hard coding). Make sure that you properly label each test.
HedgeCo Segment Data
Income By Segment		1	2	3	4	5	6	Totals
Revenues
	Sales-External	$102,787	$278,544	$471,573	$298,972	$501,236	$66,447	$1,719,559
	Sales-Internal	$37,904	$30,037	$79,406	$47,717	$22,498	$54,140	$271,702
	Interest Income	$2,704	$3,982	$1,763	$3,458	$4,411	$3,655	$19,973
Total Revenues		$143,395	$312,563	$552,742	$350,147	$528,145	$124,242	$2,011,234
Expenses
	Cost of Sales	$3,798	$2,193	$6,250	$3,501	$1,606	$7,055	$24,403
	Marketing	$6,533	$3,208	$12,900	$3,755	$2,788	$5,322	$34,506
	Interest Expense	$1,489	$1,143	$3,323	$1,984	$694	$2,256	$10,889
Total Expenses		$11,820	$6,544	$22,473	$9,240	$5,088	$14,633	$69,798
	Segment Profit	$131,575	$306,019	$530,269	$340,907	$523,057	$109,609	$1,941,436
Assets		$205,574	$557,088	$471,573	$298,972	$1,002,472	$66,447	$2,602,126

Instructions: You are to prepare a list of the type of information that should appear in an interim report for HedgeCo as of 11/1/2013. I strongly suggest that you use FASB 131 as a primary source. The list should be prioritized by reasoning that is driven primarily by case facts. The assumptions should appear lower in the list.
Type I Data
#	Item	Reasoning for selection (even if it is an assumption)
1
2
3
4
5
6
7
8
9
10
Type II Data
#	Item	Reasoning for selection (even if it is an assumption)
1
2
3
4
5
6
7
8
9
10
Type III Data
#	Item	Reasoning for selection (even if it is an assumption)
1
2
3
4
5
6
7
8
9
10

Instructions: One of HedgeCo's subsidiaries operates in a foreign country. The financial statements must be translated into U.S. dollars for financial reporting purposes. This entity has operations that are largely independent of HedgeCo (parent). Using the appropriate method, translate the financial statements into U.S. dollars.
Current Exchange Rates	1.50
Historical Rates (Equity)	0.75
Average Rate	1.10
BALANCE SHEET
12/31/13	FC
Assets
Cash	6000.00
Accounts Receivable	2000.00
Land	10200.00
Building (net)	30000.00
Accumulated Depreciation	-30000.00
Total Assets	18200.00
Liabilities
Accounts Payable	100.00
Mortgage Payable	10000.00
Equity
Common Stock	100.00
Retained Earnings	8000.00
Total Liabilities & Equity	18200.00
INCOME STATEMENT
Revenues	50000.00
Operating Expenses (net depreciation)	-25000.00
Depreciation	-5000.00
Net Income	20000.00