13 - ABC company has made an export contract of 25.000 $ with foreign German company X. The method of payment for exports is cash export. It has been reported that the export price has come to the company's account at a rate of 4.60 TL. The amount in advance has been posted. Which is the registration to be made? A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 159 02 Advance Abroad 115.000 120 02 International Buyers 115,000 B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 340 02 Advance Abroad Received 115,000 120 02 International Buyers 115,000 C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 Z Bank DTH 25.000 340 02 Advance Abroad Received 25.000 D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 Z Bank DTH 115.000 340 02 Advance Abroad Received 115,000 E) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 340 02 Advance Abroad Received 115,000 102 02 Z Bank DTH 115.000

13 - ABC company has made an export contract of 25.000 $ with foreign German company X. The method of payment for exports is cash export. It has been reported that the export price has come to the company's account at a rate of 4.60 TL. The amount in advance has been posted. Which is the registration to be made? A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 159 02 Advance Abroad 115.000 120 02 International Buyers 115,000 B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 340 02 Advance Abroad Received 115,000 120 02 International Buyers 115,000 C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 Z Bank DTH 25.000 340 02 Advance Abroad Received 25.000 D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 Z Bank DTH 115.000 340 02 Advance Abroad Received 115,000 E) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 340 02 Advance Abroad Received 115,000 102 02 Z Bank DTH 115.000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 28P

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13 - ABC company has made an export contract of 25.000 $ with the foreign German company X. The method of payment for exports is cash export. It has been reported that the export price has come to the company's account at the exchange rate of 4.60 TL. The amount in advance has been posted. Which is the registration to be made?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 159 02 Advance Abroad 115,000 120 02 International Buyers 115,000B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 340 02 Advance Abroad Received 115,000 120 02 International Buyers 115,000C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 Z Bank DTH 25.000 340 02 Advance Abroad Received 25.000D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 Z Bank DTH 115.000 340 02 Advance Abroad Received 115,000E) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 340 02 Advance Abroad Received 115,000 102 02 Z Bank DTH 115.000
15 - C business is an exporter company. The company has made an export contract of 40,000 dollars with the CRD firm located in Italy. The payment method of export is against the goods. Actual export was realized on 12.10.20XX. The IÇB rate is $ 1 = 3.80 TL. Which is the issue record?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 320 02 Foreign Sellers 152.000 601 01 International Sales 152,000B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 International Buyers 152,000 601 01 International Sales 152,000C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 International Buyers 40,000 601 01 International Sales 40,000D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 International Buyers 152,000 600 01 Domestic Sales 152,000E) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 X Bank DTH 152.000 601 01 International Sales 152,000
48-Orange Incorporation is a US-based MNC that conducts a part of its business in Oman. The transactions are denominated in Omani rials. The following details are extracted from the book of Orange incorporation in Oman. Sales RO 150,000, Cost of goods sold RO 45,000, Operating expenses RO 24,000, Depreciation expenses RO 10,000. The historical exchange rate = OMR 2/USD, The average exchange rate = OMR 3/USD, The spot exchange rate = OMR 1.5/USD. Translate the above details into reporting currency by using the monetary and non-monetary method and find the translated net profit/loss from the following options. O a. Converted net profit is USD 14,500 O b. Converted net loss is USD 12,500 O c. None of the options O d. Converted net loss is USD 14,500
1- Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied: DateSpot RateForward Rate to Jan.15December 16, 2021$0.00082 $0.00089 December 31, 2021 0.00080 0.00083 January 15, 2022 0.00086 0.00086 Assuming a forward contract was not entered into, what would be the net impact on Jackson Corp.'s 2021 income statement related to this transaction? Multiple Choice $600 (gain). $600 (loss). $400 (gain). $400 (loss). $0
38-Apple Incorporation is a US-based MNC that conducts a part of its business in Oman. The transactions are denominated in Omani Rial. The following details are extracted from the books of Apple incorporation in Oman Sales RO 150,000, Cost of goods sold RO 45,000. The spot exchange rate = OMR 2/USD, The average exchange rate = OMR 3/USD. Translate the above details into reporting currency by using the current rate method and find the translated gross profit/loss from the following options. O a. None of the options O b. Converted gross loss is USD 35,000 O c. Converted gross profit is USD 35,000 O d. Converted gross profit is USD 105,000
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6-Orange Incorporation is a US-based MNC that conducts a part of its business in Oman. The transactions are denominated in Omani Rials. The following details are extracted from the books of Orange incorporation in Oman Sales RO 150,000, Cost of goods sold RO 45,000, Operating expenses RO 24,000, Depreciation expenses RO 10,000. The historical exchange rate OMR 2/USD, The average exchange rate = OMR 3/USD, The spot exchange rate OMR 1.5/USD. Translate the above details into reporting currency by using the current and non-current method and find the translated net profit/loss from the following options. a. Converted net profit is USD 22,000 b. Converted net loss is USD 22,000 c. Converted net loss is USD 32,000 d. None of the options
(a) ABC Co has a year end of 31 December 20X1 and uses the dollar ($) as its functional currency. On 25 October 20X1 ABC Co buys goods from a Swedish supplier for Swedish Krona (SWK) 286,000. Rates of exchange: 25 October 20X1 $1 = SWK 11.16 16 November 20X1 $1 = SWK 10.87 31 December 20X1 $1 = SWK 11.02 Required: Show the accounting treatment for the above transactions if: (a) A payment of SWK286,000 is made on 16 November 20X1. (b) The amount owed remains outstanding at the year-end date.
ABC Corp. imported a machine from the US for $50,000 on October 10, 20x1. A letter of credit was opened with a local bank based on the commercial invoice for $50,000, on which ABC Corp. made a 100% deposit cover based on the exchange rate of $1 to P27.50. Shipment of the machine was effected on December 3, 20x1, at which time the exporter collected the proceeds of the letter of credit when the prevailing exchange rate was $1 to P28.00. From the exchange rate fluctuation, ABC Corp. realized how much gain or loss or no gain, no loss? AU Co. acquired a fixed asset for $36,000 on November 1, 20x1 when the exchange rate was $1 = P23.00. At December 31, 20x1, the entity's year-end, the supplier of the fixed asset has not been paid and the exchange rate at that time was $1 = P25.00. On the December 31, 20x1 statement of financial position, what will be the values for the fixed asset and the creditor who was unpaid? On January 1, 20x6, the Riza Co. purchased equipment for P300,000. The…
2 XYZ Company sells goods to a foreign customer on June 8. Payment of 3,000,000 foreign currency units (FC) is due in one month. June 30 is XYZ Company’s fiscal year-end. The following exchange rates were in effect during the period: June 8 Spot rate $1.10 June 8 30 day forward rate $1.15 June 30 Spot rate $1.14 July 8 Spot rate $1.20 A For what amount should XYZ Accounts Receivable be debited on June 8 B How much foreign exchange gain or loss should XYZ record on June 30
21. On April 1, Quality Corporation, a U.S. company, expects to sell merchandise to a French customer in three months, denominating the transaction in euros. On April 1, the spot rate is $1.41 per euro, and Quality enters into a three-month forward contract cash flow hedge to sell 400,000 euros at a rate of $1.36. At the end of three months, the spot rate is $1.37 per euro, and Quality delivers the merchandise, collecting 400,000 euros. What amount will Quality recognize in Sales from these transactions? a.0 b.400,000 c.544000 d.548000 e.564000