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On December 15,a Company Enters into a Foreign Currency Forward

Question 43

Essay

On December 15,a company enters into a foreign currency forward to buy €100,000 at C$I.60 per euro in 30 days.The exchange rate on the day of the company's year-end of December 31 was C$1.55: €l.
Requirement:
Record the journal entries related to this forward contract.

Correct Answer:

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