During July 2016, Petron Corporation had the following transactions with foreign businesses:DateNature of transactionExchange RateVendor A:Imported merchandise costing 100,000 rupees fromPakistan wholesale7/1/16Rupee .827/10/16Paid 40% of amount owed.837/31/16Paid remaining amount owed.78Customer A:7/15/08Sold merchandise for 50,000 pound to Syrian.95wholesaler7/20/08Received 20% payment.907/30/08Received remaining amount owed.91What is the foreign exchange gain or loss on July 30, 2016 transaction arising from the Syrian wholesaler?

Foreign exchange shows the amount of one currency that has to be paid to attain another currency.…

Answered: During July 2016, Petron Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Voltac Corporation (a U.S. company located in Charlotte, North Carolina) has the following import/export transactions denominated in Mexican pesos in 2017: March 1 Bought inventory costing 108,000 pesos on credit. May 1 Sold 70 percent of the inventory for 88,000 pesos on credit. August 1 Collected 74,000 pesos from customers. September 1 Paid 64,000 pesos to suppliers. Currency exchange rates for 1 peso for 2017 are as follows: March 1 $0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, how much will Voltac report on its 2017 financial statements? a.inventory b. cost of goods sold c. sales d. accounts receivable e. accounts payable f. cash
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