During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 10 Sold seven office computers to a company located in Colombia for 8,229,000 pesos. On this date, the spot rate was 390 pesos per U.S. dollar. 12 Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 420,000 Taiwan dollars. The direct exchange spot rate on this date was $0.0428. (a) Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit

During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 10 Sold seven office computers to a company located in Colombia for 8,229,000 pesos. On this date, the spot rate was 390 pesos per U.S. dollar. 12 Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 420,000 Taiwan dollars. The direct exchange spot rate on this date was $0.0428. (a) Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 27P

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(a)

Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 10 Sold seven office computers to a company located in Colombia for 8,229,000 pesos. On this date, the spot rate was 390 pesos per U.S. dollar. 12 Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 420,000 Taiwan dollars. The direct exchange spot rate on this date was $0.0428. (a) Your answer is correct. Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit…
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