Prepare the journal entries made by Pinnacle, a U.S. company, to record the above purchase and payment transaction.
Prepare the journal entries made by Pinnacle, a U.S. company, to record the above purchase and payment transaction.
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter17: Multinational Financial Management
Section: Chapter Questions
Problem 5P
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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 |
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