Wolters Corporation Is a U

Essay

Wolters Corporation is a U.S. corporation that purchased 50,000 chocolate bars from a foreign manufacturer on March 1, 20X9 for 80,000 foreign currency units, to be paid on April 30, 20X9. On March 1, 20X9 Wolters also entered into a forward contract to purchase 80,000 foreign currency units on April 30, 20X9. Wolters has a March 31 year end.
Exchange rates are as follows:
Required:
Prepare the journal entries to record the transactions through April 30, 20X9. March 31 is the fiscal period end. Ignore the split between spot gain/loss and time value.