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, 2020 June 30, 2020 August 2, 2020 Spot Rate (rupees) P 0.80 P 0.84 P 0.82 Forward Rate (rupees) 0.77 0.83 0.82 1. What was the

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, 2020 June 30, 2020 August 2, 2020 Spot Rate (rupees) P 0.80 P 0.84 P 0.82 Forward Rate (rupees) 0.77 0.83 0.82 1. What was the

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
Carl Inc. purchased inventory on September 12, 2017 from a foreign customer for 750,000 units of foreign currency (FC) due on January 12, 2018. Simultaneously, the company entered into a forward contract for 750,000 units of FC for delivery on January 12, 2018 at the forward rate of $1.03. Payment was made to the foreign customer on January 12, 2018. The company ends its fiscal year on December 31. The following exchange rates were quoted: Forward Rate Date Spot Rate (Delivery on 1/12/2018) 9/12/2017 1.01 1.03 12/31/2017 1.08 1.09 1/12/2018 1.05 Notes: Read carefully and follow strictly so that Bb can grade you correctly!1. Use comma in numbers, one thousand is 1,000, not 1000. Round to the nearest dollar: 1,000.45 should be 1,000, and 1,000.55 should be 1,001, no decimal points. No $ sign.2. If no entry is required, write N/A.3. Only use the following accounts: Inventory, A/P (FC), A/R (FC), Cash, Sales, CGS, Exchange G/L, Fwd Contract,…
On December 15, 2017, Lisbeth Inc. (a U.S. 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, 2018. Currency exchange rates for 1 schilling are as follows: December 15, 2017 $0.28December 31, 2017 0.30January 25, 2018 0.33January 31, 2018 0.34 Prepare all journal entries for Lisbeth Company in connection with this purchase and payment.
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.
On December 15, 2017, Lisbeth Inc. (a U.S. 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, 2018. Currency exchange rates for 1 schilling are as follows:Prepare all journal entries for Lisbeth Company in connection with this purchase and payment.
On March 1, 2021, a Philippine company sold merchandise to a foreign customer in Singapore dollars for SG$12,000. On the same date, the Philippine company received a 60-day 12% note receivable from the foreign customer. On April 30, 2021, the Philippine company collected the total proceeds from the foreign customer.Buying Rate:March 1, 2021 - P1 = SG$.O29411March 31, 2021 - P1 = SG$.028901April 30, 2021 - P1 = SG$.028571Selling Rate:March 1, 2021 - SG$1 = P35.47March 31, 2021 - SG$1 = P36.10April 30, 2010 - SG$1 = P36.071. What is the forex gain or loss on March 31, 2021? a. 7,200 gainb. 7,200 lossc.7.272 gaind 7.272 loss2. What is the forex gain or loss on the settlement date? a. 4,800 gainb. 4,800 lossc. 4,848 gaind. 4,848 loss
KA. On July 1, 2019, Great White North (GWN) Inc. purchased merchandise from a supplier in the U.S. for US$800,000 with terms requiring full payment by October 31, 2019. GWN has a July 31st year end. On October 31, 2019, GWN paid its supplier in full. Selected dates and spot rates are shown below: July 1, 2019 CDN $1.2150 July 31, 2019 CDN $1.2175 October 31, 2019 CDN $1.22 1) Prepare all journal entries on Settlement date. 2) Prepare all journal entries that would be prepared at year end.
On April 10, 2019, when the spot rate is $1.10/€, a U.S. company sells merchandise to a customer in Italy. The spot rate is $1.11/€ on June 30, the company’s year‑end. Payment of €100,000 is received on August 10, 2019, when the spot rate is $1.08/€. What is the effect on fiscal 2019 and 2020 income? Fiscal 2019 Fiscal 2020 a. $1,000 exchange loss $3,000 exchange gain b. No effect $2,000 exchange loss c. No effect $2,000 exchange gain d. $1,000 exchange gain $3,000 exchange loss
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).
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.)
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.
STARLA Company sold merchandise for 30,000 pounds to a customer in London on December 1, 2020. Payment inBritish pounds was due on March 31, 2021. On the same date, the company entered into a 120-day forward contract tosell 30,000 pounds to Central City Bank. Exchange rates for one pound on different dates are as follows: December 1 December 31 March 31Spot rates 81.4 82.3 82.030-day forward 82.3 82.9 83.260-day forward 82.8 82.7 82.690-day forward 81.6 82.6 83.4 120-day forward 82.5 82.8 82.5How much…