Vava Corp. imported an article from Japan. The invoice value of the imported articles was $ 7,000 ($1- P50). The following are incurred in connection with the Ejmportation: Insurance Freight Postage Wharfage Arrastre charges Brokerage fee Facilitation fee P 15,000 10,000 5,000 7,000 8,000 25,000 50,000 The imported article was subject to P50,000 customs duty and P30,000 excise tax. Vava Corp. spent P5,000, exclusive of the VAT, for trucking from the customs warehouse on its way to its warehouse in Quezon City. The VAT on importation is;

Vava Corp. imported an article from Japan. The invoice value of the imported articles was $ 7,000 ($1- P50). The following are incurred in connection with the Ejmportation: Insurance Freight Postage Wharfage Arrastre charges Brokerage fee Facilitation fee P 15,000 10,000 5,000 7,000 8,000 25,000 50,000 The imported article was subject to P50,000 customs duty and P30,000 excise tax. Vava Corp. spent P5,000, exclusive of the VAT, for trucking from the customs warehouse on its way to its warehouse in Quezon City. The VAT on importation is;

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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J, VAT registered taxpayer, had the following data on importation in 2022:Invoice cost (exchange rate $1: P46), $56,500Custom duties, 12%Freight, P200,000Insurance, P280,000Other charges before release from customs house, P70,000Facilitation fee, P100,000Freight from customs house to warehouse (net of VAT), P120,000The imported goods were sold for P6,650,000 (inclusive of VAT) 10 days after itsdelivery to the warehouse.How much is the VAT Payable?
On September 30, 2020, Chicken Ltd., a Canadian company, entered into a contract to purchase goodsfrom Wing Ltd., a foreign corporation. The terms of the contract call for the goods to be delivered toChicken Ltd.'s Edmonton location on May 30, 2021. The cost of goods is EUR $1,000,000 to be settled onJuly 31, 2021. On September 30, 2020, Chicken Ltd. also arranged for a forward contract through its bank for EUR$1,000,000. The goods were delivered on time, and Chicken Ltd, settled with Wing Ltd. on July 31, 2021.Chicken Ltd. has a April 30 year-end.The spot and forward rates are as follows: Spot Rate ($CAD)1 USD = x.xX CAD Forward Rate($CAD)1 USD = XXX CAD September 30, 2020 $1.42 $1.46 April 30, 2021 $1.44 $1.48 May 30, 2021 $1.45 $1.49 July 31, 2021 $1.50 $1.50 RequiredPrepare Chicken Ltd.'s journal entries to reflect the above assuming that:a. the hedge is a cash flow hedge, andb. the hedge is a fair value hedge.
Rochester, Incorporated purchased cameras from a Japanese company at a price of 4.9 million yenOn the purchase date, the exchange rate was $0.0100 per Japanese yen, bu when RochesterIncorporated, paid the liabilitythe exchange rate was $0.0103 per yen. When this foreign account payable was paid, RochesterIncorporated, recorded a
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