Start Effect of backdating a contract

Effect of backdating a contract

Backdating has not, in the past, been illegal if no documents are forged, if communicated to the shareholders, and if properly reflected in earnings and in taxes.

The vice president allegedly submitted fraudulent vendor invoices in order to receive payments. The machines were to be delivered and the amount collected on March 1, 2011.

Payment was received from the foreign customer on January 31, 2011.

Spot rates on October 1, December 31, and January 31 were $0.42, $0.425, and $0.435, respectively.

Kline amortizes all premiums and discounts on forward contracts and closes its books on December 31.

Required: Prepare all journal entries relative to the above to be made by Kline during 20.

The following are the changes that the FASB proposed to the original discussion paper on October 2008. a change in the exchange rate quoted by a foreign exchange trader. synonymous with the translation of foreign currency financial statements into dollars. the difference between the recorded dollar amount of an account receivable denominated in a foreign currency and the amount of dollars received. the difference between the buying and selling rate quoted by a foreign exchange trader at the settlement date. Payment was made to the foreign customer on January 31, 2011.

Spot rates on October 1, December 31, and January 31, were $0.72, $0.73, and $0.76, respectively.

On October 13, the exchange rate was $1.00 = 114 Japanese yen. 12-7 On November 1, 2010, Bisk Corporation, a calendar-year U. Corporation, invested in a speculative contract to purchase 700,000 euros on January 31, 2011, from a German brokerage firm.