code Y-DEFGH1K18. Platypus Ltd exports goods to Harlom Inc. All sales contracts are denominated in US dollars. Sales of US$5 million aremade on 1 May 2022, FOB Sydney. The amount is due for payment by Harlom Inc. on 1 September 2022. Platypus Ltd'sreporting date is 30 June.Additional informationDateSpot rate1 May 2022A$1.00US$0.8430 June 2022A$1.00 US$0.851 September 2022 A$1.00 = US$0.86REQUIREDPrepare the journal entries for Platypus Ltd to account for the above transaction. LO 30.2, 30.3, 30.5Sheet1

Foreign Exchange Rate has a vital role in the export and import business, because these rates are…

G H Ltd exports goods to Harlom Inc. All sales contracts are denominated in US dollars. Sales of US$5 million a ade on 1 May 2022, FOB Sydney. The amount is due for payment by Harlom Inc. on 1 September 2022. Platypus L porting date is 30 June. dditional information ate Spot rate May 2022 A$1.00 US$0.84 June 2022 A$1.00 US$0.85 eptember 2022 A$1.00= US$0.86 QUIRED

G H Ltd exports goods to Harlom Inc. All sales contracts are denominated in US dollars. Sales of US$5 million a ade on 1 May 2022, FOB Sydney. The amount is due for payment by Harlom Inc. on 1 September 2022. Platypus L porting date is 30 June. dditional information ate Spot rate May 2022 A$1.00 US$0.84 June 2022 A$1.00 US$0.85 eptember 2022 A$1.00= US$0.86 QUIRED

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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Max Ltd sells equipment to Star Ltd, a U.S. company on 30/01/2020 for US$250,000. Goods are invoiced in US dollars. Payment is made on 5/03/2020. The company also buys parts from the USA, also invoiced in US$, value US$187,500 on 20/4/2020. The functional currency of Max Ltd is AUD$. As at 30/06/2020, this debt unpaid. Rates: 30/01 – A$1 = US$0.93 5/03 – A$1 = US$0.92 20/4 – A$1 = US$0.94 30/6 – A$1 = US$0.91 Required: SHOW YOUR WORKINGS Prepare journal entries for the above transactions. (Round answers to the nearest dollar, e.g. $200,263.57 = $200,264).
On September 30, 2020, Chicken Ltd., a Canadian company, entered into a contract to purchase goodsfrom Wing Ltd., a foreign corporation. The terms of the contract call for the goods to be delivered toChicken Ltd.'s Edmonton location on May 30, 2021. The cost of goods is EUR $1,000,000 to be settled onJuly 31, 2021. On September 30, 2020, Chicken Ltd. also arranged for a forward contract through its bank for EUR$1,000,000. The goods were delivered on time, and Chicken Ltd, settled with Wing Ltd. on July 31, 2021.Chicken Ltd. has a April 30 year-end.The spot and forward rates are as follows: Spot Rate ($CAD)1 USD = x.xX CAD Forward Rate($CAD)1 USD = XXX CAD September 30, 2020 $1.42 $1.46 April 30, 2021 $1.44 $1.48 May 30, 2021 $1.45 $1.49 July 31, 2021 $1.50 $1.50 RequiredPrepare Chicken Ltd.'s journal entries to reflect the above assuming that:a. the hedge is a cash flow hedge, andb. the hedge is a fair value hedge.
On September 1, 2020, Creed Co. sold merchandise to a foreign entity for 250,000 francs. Terms of the sale require payment in francs on February 1, 2021. On September 1, 2020, the spot exchange rate was P1.2 per franc. On December 31, 2020, the spot rate was P1.19, but the rate increased to P1.22 by February 1, 2021, when payment was received. Required: Provide journal entries in 2020 and 2021.
Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2019 and 2020. 2019 Apr. 8 Sold merchandise to Salinas & Sons of Mexico for $5,938 cash. The exchange rate for pesos is $0.1043 on this day. July 21 Sold merchandise on credit to Sumito Corp. in Japan. The price of 1.5 million yen is to be paid 120 days from the date of sale. The exchange rate for yen is $0.0094 on this day. Oct. 14 Sold merchandise for 19,000 pounds to Smithers Ltd. of Great Britain, payment in full to be received in 90 days. The exchange rate for pounds is $1.4566 on this day. Nov. 18 Received Sumito’s payment in yen for its July 21 purchase and immediately exchanged the yen for dollars. The exchange rate for yen is $0.0092 on this day. Dec. 20 Sold merchandise for 17,000 ringgits to Hamid Albar of Malaysia, payment in full to be received in 30 days. On this day, the exchange rate for ringgits is $0.4501. Dec. 31 Recorded adjusting entries…
On April 4 2017 Chase company products delivered to a Pakistan firm inventory it sold for 100,000 rupees. Payment is due to be received on August 2, 2020. The company's fiscal year ends June 30. Also on April 4, Conrado Uberita Beauty Products entered into a foreign exchange forward contract to sell 100,000 rupees on August 2, 2020. April 4, 2020June 30, 2020August 2, 2020Spot Rate (rupees)P 0.80P 0.84P 0.82Forward Rate (rupees)0.770.830.82 1. What was the net impact on Chase income in 2017 as a result of this hedge?2. The fair value of the forward contract on June 30 2017?
Leigh of New York sells its products to customers in the United States and the United Kingdom. On December 16, 2019, Leigh sold merchandise on credit to Bronson Ltd. of London at a price of 17,000 pounds. The exchange rate on that day for £1 was $1.4583. On December 31, 2019, when Leigh prepared its financial statements, the rate was £1 for $1.4382. Bronson paid its bill in full on January 15, 2020, at which time the exchange rate was £1 for $1.4482. Leigh immediately exchanged the 17,000 pounds for U.S. dollars. Prepare Leigh’s journal entries on December 16, December 31, and January 15 (round to the nearest dollar).
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1. On May 20, 2019, when the spot rate is $1.08/€, a U.S. company buys merchandise from a supplier in Italy, at a cost of €100,000. The spot rate is $1.05/€ on June 30, the company’s year‑end. Payment of €100,000 is made on July 30, 2019, when the spot rate is $1.12/€. What is the effect on fiscal 2019 and fiscal 2020 income? Fiscal 2019 Fiscal 2020 a. No effect $4,000 exchange loss b. $3,000 exchange loss $7,000 exchange gain c. No effect $4,000 exchange gain d. $3,000 exchange gain $7,000 exchange loss
On 1 March 2025, Quality Furniture Importers acquires furniture from a supplier in New Zealand. The furniture is shipped f.o.b. from New Zealand on 1 September 2025. The cost of the furniture is NZD $800 000. The amount has not been paid at 30 September 2025 and exchange rates are as follows: 1 September 2025 A$1.00 = NZD $1.08 30 September 2025 A$1.00 = NZD $1.06 Required: What is the amount payable at 1 September and 30 September 2025 in Australian dollars? (Rounded to the nearest whole A$.) ANSWER a): Did the Australian dollar strengthen or weaken? ANSWER b): Prepare the journal entries for the above dates showing the amount of exchange gain or loss
On March 1, 2019, a U.S. company made a credit sale requiring payment in 30 days from a Malaysian company, Hamac Sdn. Bhd., of 20,000 Malaysian ringgits. Assuming the exchange rate between Malaysian ringgits and U.S. dollars is $0.4538 on March 1 and $0.4899 on March 31, prepare the entries to record the sale on March 1 and the cash receipt on March 31.
Local Corp imported a heavy machine from the US for US$50,000 on October 10, 2019. A letter of credit was opened with a Makati branch based on the commercial invoice for US$50,000, on which Local Corpl made a 100% deposit cover based on the exchange rate of $1.00 to P27.50. Shipment of the heavy machine was effected on December 30, 2019, at which time the exporter collected the proceeds of the letter of credit when the prevailing exchange rate was $1.00 to P28.00. From the exchange rate fluctuation, Local Corp realized: Group of answer choices A. P25,000 gain B.P25,000 loss C. P5,000 gain D. No gain, No loss
On December 15, 2020, Lisbeth Inc. (a U.S.-based company) purchases merchandise inventory from a foreign supplier for 50,000 schillings. Lisbeth agrees to pay in 45 days, after it sells the merchandise. Lisbeth makes sales rather quickly and pays the entire obligation on January 25, 2021. Currency exchange rates for 1 schilling are as follows: Date U.S. Dollar per Schilling December 15, 2020 $ 0.28 December 31, 2020 0.30 January 25, 2021 0.33 January 31, 2021 0.34 Prepare all journal entries for Lisbeth Company in connection with this purchase and payment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)