Masters Corp has a 100,000 foreign currency denominated accounts receivable on its books that is due to be collected in on June 30, 2011. The following are the US dollar equivalents for this receivable at various dates:
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4) Masters Corp has a 100,000 foreign currency denominated accounts receivable on its books that is due to be collected in on June 30, 2011. The following are the US dollar equivalents for this receivable at various dates:
Jan 1, 2010 $35,000 Dec 31, 2010 $32,000
March 31, 2010 $38,000 June 30, 2011 $40,000
April 30, 2010 $ 34,000
What is the FX transaction gain or loss as of the following dates?
- a) Quarter ending March 31, 2010
Computation of the FX transactions Gain or loss of the following dates is :
Quarter ending March 31 2010 :
Dollar value as on March 31 2010 = $38000
Dollar value as on January 1 2010 = $35000
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- Please help with # 4 Thank you Masters Corp has a 100,000 foreign currency denominated accounts receivable on its books that is due to be collected in on June 30, 2011. The following are the US dollar equivalents for this receivable at various dates: Jan 1, 2010 $35,000 Dec 31, 2010 $32,000 March 31, 2010 $38,000 June 30, 2011 $40,000 April 30, 2010 $ 34,000 What is the FX transaction gain or loss as of the following dates? a) Quarter ending March 31, 2010 b) Month ending April 30, 2010 c) Year ending December 31, 2010 d) Six months ended June 30, 2011Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2017, Brief correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Brief collected the receivable on February 15, 2018, the U.S. dollar equivalent was $120,000. In Brief's 2018 consolidated income statement, how much should it report as a foreign exchange gain?$25,000$15,000$10,000$0Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31, 2017, Brief correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Brief collected the receivable on February 15, 2018, the U.S. dollar equivalent was $120,000. In Brief’s 2018 consolidated income statement, how much should it report as a foreign exchange gain?a. $–0–b. $10,000c. $15,000d. $25,000
- On July 1, 2017, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2018. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows:In its 2018 income statement, what amount should Mifflin include as a foreign exchange gain or loss on the note?a. $15,000 gainb. $15,000 lossc. $10,000 gaind. $10,000 lossOn July 1, 2020, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2021. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows: LO 9-2 LO 9-2 LO 9-2 LO 9-2, 9-3 Problems 1. Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses? LO 9-1 Type of Transaction Foreign Currency Foreign Exchange Gain or Loss a. Export sale Appreciates Loss b. Import purchase Appreciates Gain c. Import purchase Depreciates Gain d. Export sale Depreciates Gain Date Amount July 1, 2020 (date borrowed). . . . . . . . . . . . . . . . . . . . . . . . . $225,000 December 31, 2020 (Mifflin’s year-end). . . . . . . . . . . . . . . . 220,000 July 1, 2021 (date repaid). . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,000 In its 2021 income statement, what amount should Mifflin include as a…4) Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31, 2020, Brief correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Brief collected the receivable on February 15, 2021, the U.S. dollar equivalent was $120,000. In Brief’s 2021 consolidated income statement, how much should it report as a foreign exchange gain? a) $–0– b)$10,000 c) $15,000 d) $25,000
- Choose the correct. Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31, 2017, Brief correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Brief collected the receivable on February 15, 2018, the U.S. dollar equivalent was $120,000. In Brief’s 2018 consolidated income statement, how much should it report as a foreign exchange gain?a. $–0–b. $10,000c. $15,000d. $25,000The following is the foreign currency balance sheet for Lee Company on December 31, 2006 (use for questions 1 and 2) Cash 100,000 Fixed Assets 30,000 Liabilities 60,000 Common Stock 20,000 Retained Earnings 50,000 The following FX rates were in effect on December 31: Current (Spot) rate: 1 US= .40 FC Historical rate: 1 US= .30 FC Forward rate: 1 US= .25 FC Assume the US dollar is the functional currency: a. What is the US dollar value of Cash on Dec 31? b. What is the US dollar value of Fixed Assets on Dec 31? c.Where is the FX remeasurement gain or loss under the temporal method at Dec 31 reported? 2. Assume the FC is the functional currency. a. What is the US dollar value of Cash on Dec 31? b. What is the US dollar value of Fixed Assets on Dec 31? c.Where is the FX translation adjustment under the current rate method…On December 20, 2017, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 50,000 ostras. Payment is received on January 10, 2018. Currency exchange rates for 1 ostra are as follows: December 20, 2017 $1.05December 31, 2017 1.02January 10, 2018 0.98a. How does the fluctuation in exchange rates affect Butanta’s 2017 income statement?b. How does the fluctuation in exchange rates affect Butanta’s 2018 income statement?
- On December 20, 2020, Momeier Company (a U.S.-based company) sold parts to a foreign customer at a price of 45,000 rials. Payment is received on January 10, 2021. Currency exchange rates are as follows: Date U.S. Dollar per Rial December 20, 2020 $ 1.14 December 31, 2020 1.11 January 10, 2021 1.07 How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeier’s 2020 income statement? How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeier’s 2021 income statement?On January 31, 2020 Fred has a 50,000 foreign currency denominated Accounts Receivable due in 1 month. This receivable is not hedged. The following exchange rates were in effect. January 31, 2020 : spot rate 5 US = 1 FC January 31, 2020: one month forward rate 2.5 US = 1FC February 28, 2020 spot rate 4 US = 1 FC February 28, 2020 one month forward rate 3 US = 1FC How much is the FX gain or loss on February 28, 2020.On January 31, 2020 Fred has a 50,000 foreign currency denominated Accounts Payable due in 1 month. This payable is not hedged. The following exchange rates were in effect. January 31, 2020 : spot rate 5 US = 1 FC January 31, 2020: one month forward rate 2.5 US = 1FC February 28, 2020 spot rate 4 US = 1 FC February 28, 2020 one month forward rate 3 US = 1FC How much is the FX gain or loss on February 28, 2020. a. FX gain $10,000 b. FX gain $50,000 c. FX loss $2,500 d. FX loss $50,000 e. FX gain $2,500
