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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)

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)

Accounting
Accounting
27th Edition
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter11: Current Liabilities And Payroll
Section: Chapter Questions
Problem 11.4BPR
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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! 

 

October 9 November 15 November 19 December 31 January 15 32.00 33.50 33.70 34.50 35.00
Transcribed Image Text:October 9 November 15 November 19 December 31 January 15 32.00 33.50 33.70 34.50 35.00
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