ACCOUNTING-Balance Sheet Accounts Debit (Credit)

Problem
10-2

Balance Sheet Accounts Debit
(Credit)

2nd Quarter

3rd Quarter

Income Statement Accounts
Debit (Credit)

Use the rows below for your calculations

Problem 10-5
PROBLEM 10-5

For each option	March 1	March 31	May 31
Notional amount
Strike price
Spot rate
Value of option…
Intrinsic value
Time value

			1st Quarter	2nd Quarter	3rd Quarter	Total
Related to the commitment:
Gain (loss) on commitment
Gain (loss) on option transferred from OCI to offset
gain or loss on commitment
Gain (loss) in time value
Sales revenue
Cost of Sales:
Original cost
Adjustment for change in value of commitment
Additional processing costs
Total impact on earnings

Related to the purchase of equipment:
Gain (loss) in time value
Depreciation expense:







Total impact on earnings……………………………………………….

Related to the note payable:











Total impact on earnings……………………………………………….












A