Homestyle Brands imports materials from other coun‑ tries and exports finished products to customers throughout the world. Information regarding four such trans‑ actions occurring in the last accounting period, all denominated in units of foreign currency, is given below: Country Amount Spot rate at transaction date Spot rate at payment date 1. Import from Taiwan . . . . . . . 100,000 Taiwan dollars $0.033 $0.028 2. Import from Poland . . . . . . . 600,000 zloty 0.280 0.310 3. Export to Brazil. . . . . . . . . . . 400,000 reais 0.321 0.358 4. Export to Switzerland . . . . . . 950,000 Swiss francs 1.040 1.007 Required Prepare the journal entries made by Homestyle Brands to record the above events on the transaction date and on the payment date

Homestyle Brands imports materials from other coun‑ tries and exports finished products to customers throughout the world. Information regarding four such trans‑ actions occurring in the last accounting period, all denominated in units of foreign currency, is given below: Country Amount Spot rate at transaction date Spot rate at payment date 1. Import from Taiwan . . . . . . . 100,000 Taiwan dollars $0.033 $0.028 2. Import from Poland . . . . . . . 600,000 zloty 0.280 0.310 3. Export to Brazil. . . . . . . . . . . 400,000 reais 0.321 0.358 4. Export to Switzerland . . . . . . 950,000 Swiss francs 1.040 1.007 Required Prepare the journal entries made by Homestyle Brands to record the above events on the transaction date and on the payment date

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section24.1: Recording International Sales

Problem 1WT

See similar textbooks

Similar questions

Recording Import Transactions Pinnacle Foods imports a variety of items for resale to U.S. retail‑ ers. Following is a description of purchases and foreign‑currency‑denominated payments made in the last accounting period, plus the direct exchange rates for each date: Country Amount Currency Spot rate at purchase Spot rate at payment Australia . . . . . . . . . . . . . . . . . . 200,000 Australian dollar $0.7600 $0.7300 Thailand . . . . . . . . . . . . . . . . . . 800,000 Baht 0.0345 0.0365 Hong Kong . . . . . . . . . . . . . . . . 5,000,000 Hong Kong dollar 0.1319 0.1362 Jordan . . . . . . . . . . . . . . . . . . . 500,000 Dinar 1.4100 1.3900 Required Prepare the journal entries made by Pinnacle, a U.S. company, to record the above purchase and payment transaction.
The U.S Company, In the month of January 15 sold machinery on account to a retailer Australia. The invoice price was 250,000 US dollars and the exchange rate for the Australia dollar was $0.576. Select one:a. Cash A/c Dr 144,000$Sales A/c Cr 144,000$b. Cash A/c Dr 250,000$Sales A/c Cr 250,000$c. Accounts Receivable 250,000$ Sales 250,000$ d. Accounts receivable A/c Dr 144,000$Sales A/c Cr 144,000$
Required information Skip to question On December 5, 20X8, Texas based Imperial Corporation purchased goods from a Saudi Arabian firm for 100,000 riyals (SAR), to be paid on January 10, 20X9. The transaction is denominated in Saudi riyals. Imperial's fiscal year ends on December 31, and its reporting currency is the U.S. dollar. The exchange rates are: December 5, 20X8 1 riyal = $ 0.265 December 31, 20X8 1 riyal = 0.262 January 10, 20X9 1 riyal = 0.264 Based on the preceding information, what journal entry would Imperial make on December 31, 20X8, to revalue foreign currency payable to equivalent U.S. dollar value? A. Accounts Payable (SAR) 300 Foreign Currency Transaction Gain 300B. Accounts Payable (SAR) 100 Foreign Currency Transaction Gain 100 C. Foreign Currency Transaction Loss 300 Accounts Payable (SAR) 300 D. Foreign Currency Transaction Loss 200 Accounts Payable (SAR) 200
Accounting for Business Combinations Honesty Company placed a purchase order to a Singaporean Company on October 9, 2022. The contract price was S$150,000. The merchandise was delivered on November 19, 2022. The invoice was dated November 15, 2022, FOB Destination. Full payment was paid on January 15, 2023. The spot rate for the Singaporean Dollar on the respective dates is as follows (see image below). Answer the following subquestions: a. How much is the Purchases to be reported in 2022? b. How much is Foreign Exchange Gain (Loss) to be reported in 2022? ________________ thanks!
Selco, a U.S. Company, imports and exports tools, shop equipment, and industrial construction supplies. The company uses a periodic inventory system. During April the company entered into the following transactions. All rate quotations are direct exchange rates. April 3 Purchased power tools from a wholesaler in Japan, on account, at an invoice cost of 1,710,000 yen. On this date the exchange rate for the yen was $0.0076. 5 Sold hand tools on credit that were manufactured in the U.S. to a retail outlet located in West Germany. The invoice price was $3,300. The exchange rate for marks was $0.5962. 9 Sold electric drills on account to a retailer in New Zealand. The invoice price was 16,700 U.S. dollars and the exchange rate for the New Zealand dollar was $0.5891. 11 Purchased drill bits on account from a manufacturer located in Belgium. The billing was for 801,282 francs. The exchange rate for francs was $0.0312. 16 Paid 1,010,000 yen on account to the…
Rabato Corporation acquired merchandise on account from foreign supplier on November 1, 2015, for 60,000 LCU (local currency units). It paid the foreign currency account payable on January 15, 2016. The following exchange rates for 1 LCU are known: December 1, 2015 $0.345, December 31, 2015 $0.333 and January 1, 2016 $0.359. How does the fluctuation in exchange rates affect Rabato's 2015 income statement? How does the fluctuation in exchange rates affect Rabato's 2016 income statement?
Royal Company (a U.S. based company) has foreign branch in Great Britain. The foreign branch generates £5,000,000 pretax income. October 15, branch sends £1,000,000 to Royal. Income tax rate in Great Britain is 15%. Taxes are paid to Great Britain’s government on December 31. Assume a tax rate of 21% in the U.S. Here are relevant exchange rates: US$ to £ 1/1 $1.2 10/15 $1.3 12/31 $1.4 Average $1.35 Determine the amount (in U.S. dollars) of U.S. taxable income, U.S. foreign tax credit, and U.S. tax liability related to the foreign branch.
5. U.S. Company purchases from Japanese Company for 60 million yen when theexchange rate is $.009. U.S. Company makes payment a day when the exchange rate is .0085.When recording the journal entry for payment the U.S. Company will report:a. Cash debit $540,000b. Cash credit $540,000c. Loss $30,000d. Gain $30,000 Please show work. Do not use excel
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 117,000 pesos on credit. May 1 Sold 70 percent of the inventory for 97,000 pesos on credit. August 1 Collected 78,500 pesos from customers. September 1 Paid 68,500 pesos to suppliers. Currency exchange rates for 1 peso for 2017 are as follows: March 1 $ 0.15 May 1 0.16 August 1 0.17 September 1 0.18 December 31 0.19 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 Good Sold c. Sales d. A/ R e. A/P F. Cash
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
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 $0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, how much will Voltac report on its 2017 financial statements? a.inventory b. cost of goods sold c. sales d. accounts receivable e. accounts payable f. cash
(a) ABC Co has a year end of 31 December 20X1 and uses the dollar ($) 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.

SEE MORE QUESTIONS

Recommended textbooks for you

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

Recording Import and Export Transactions Homestyle Brands imports materials from other coun‑
tries and exports finished products to customers throughout the world. Information regarding four such trans‑
actions occurring in the last accounting period, all denominated in units of foreign currency, is given below:
Country Amount
Spot rate at
transaction date
Spot rate at
payment date
1. Import from Taiwan . . . . . . . 100,000 Taiwan dollars $0.033 $0.028
2. Import from Poland . . . . . . . 600,000 zloty 0.280 0.310
3. Export to Brazil. . . . . . . . . . . 400,000 reais 0.321 0.358
4. Export to Switzerland . . . . . . 950,000 Swiss francs 1.040 1.007
Required
Prepare the journal entries made by Homestyle Brands to record the above events on the transaction date
and on the payment date