Exercise - Assume the following spot exchange rates between the U.S. dollar and the British pound sterling:
March 1 $1.8685
March 31 $1.8258
April 30 $1.7740
On March 1, XYZ, a U.S. Company sells good to a British importer for £1,000,000. Payment is to be received on April 30 and XYZ adjusts its financial statements quarterly.
What are the journal entries for XYZ on March 1, March 31, and April 30? Was the dollar strengthening or weakening over the period of the contract?
Need journal entries and analysis if dollar was strenghtening or weakening over the period of the contract over the period of the contract.