PROBLEM 3 Mee Co. acquired inventory from a foreign entity for 100,000 FCUs (foreign currency units). The term is FOB Shipping Point. Relevant information follows: Date Dec. 1, 20x1 Dec. 22, 20x1 Dec. 31, 20x1 Jan. 8,20x2 Particulars Place of order Date of shipment End of reporting period Settlement date Exchange rates (1 FCU to LCUS) 13.70 LCUS 13.75 13.80 13.50 Requirements: a. How much accounts payable is initially recognized form the transaction? b. How much is the foreign exchange gain (loss) is recognized in Mee's 20x1 statement of profit or loss? c. How much inventory from the transaction is included in Mee's 20x1 statement of financial position? d. How much accounts payable from the transaction is included in Mee's 20x1 statement of financial position? e. How much is the foreign exchange gain (loss) is recognized in Mee's 20x2 statement of profit or loss? f. How much is the total foreign exchange gain (loss) recognized from the transaction?

PROBLEM 3 Mee Co. acquired inventory from a foreign entity for 100,000 FCUs (foreign currency units). The term is FOB Shipping Point. Relevant information follows: Date Dec. 1, 20x1 Dec. 22, 20x1 Dec. 31, 20x1 Jan. 8,20x2 Particulars Place of order Date of shipment End of reporting period Settlement date Exchange rates (1 FCU to LCUS) 13.70 LCUS 13.75 13.80 13.50 Requirements: a. How much accounts payable is initially recognized form the transaction? b. How much is the foreign exchange gain (loss) is recognized in Mee's 20x1 statement of profit or loss? c. How much inventory from the transaction is included in Mee's 20x1 statement of financial position? d. How much accounts payable from the transaction is included in Mee's 20x1 statement of financial position? e. How much is the foreign exchange gain (loss) is recognized in Mee's 20x2 statement of profit or loss? f. How much is the total foreign exchange gain (loss) recognized from the transaction?

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13MJ: Mornin' Joe

Section: Chapter Questions

Problem 3IFRS

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