Brandlin company of anaheim, california, purchases materials from a foreign supplier on december 1, 2017, with payment of 22,000 korunas to be made on march 1, 2018. the materials are consumed immediately and recognized as cost of goods sold at the date of purchase. on december 1, 2017, brandlin enters into a forward contract to purchase 22,000 korunas on march 1, 2018. relevant exchange rates for the koruna on various dates are as follows:

forward rate (to march 1, 2018) 4.075 spot rate date december 1, 2017 december 31, 2017 march 1, 2018 $ 4.00 4.200 4.10 4.25 niabrandlin’s incremental borrowing rate is 12 percent. the present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. brandlin must close its books and prepare financial statements at december 31.

a-1. assuming that brandlin designates the forward contract as a cash flow hedge of a foreign currency payable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in u. s. dollars.

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.