On December 1, 20X8, Taste Bits Inc.

entered into a 60-day forward contract to purchase

100,000 Swiss francs. The forward contract is not designated as a hedge. The rates were as
follows:

Based on the preceding information, prepare all journal entries for Taste Bits Inc.

On December 1, 20X8, Hedge Company entered into a 60-day speculative forward contract
to sell

200,000 British pounds () at a forward rate of 1 = $1.78.

The rates are as follows:

Date
Spot Rate
Forward Rate for Feb 1

December 1, 20X8
1 = $1.76
$1.78

December 31, 20X8

1 = $1.73
$1.74

February 1, 20X9
1 = $1.75

Based on the preceding information, prepare all journal entries for Hedge Company.

On June 1, 20X5, Secure Company speculates that the price of wheat will decrease and
sell20 wheat futures contracts at a price of Rp.145,000/sack. Each contract is for 3,000sack
of wheat and maturity date is August 31. The futures exchange requires payment of 8% of
notional amount as margin deposit. Following prices are given:

Date
August 31 Futures Price/Sack

June 1
Rp.145,000

June 30
Rp.149,000

July 31
Rp.151,000

August 31
Rp.148,000