Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars. The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

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Answer 1

Question

Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.

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On June 1, a calendar year U.S. manufacturer sells, on 60-day credit, goods to Oman importer for US$ 1,000,000. The Dollar/Rial exchange rate is OMR 1 = US$ 0.40 on June 1, and OMR 1 = $ 0.39 on August 1. Required: Prepare dated journal entries in Oman Rials to record the incurrence and settlement of this foreign currency transaction assuming It employs a two-transaction perspective.

Required information Skip to question On December 5, 20X8, Texas based Imperial Corporation purchased goods from a Saudi Arabian firm for 100,000 riyals (SAR), to be paid on January 10, 20X9. The transaction is denominated in Saudi riyals. Imperial's fiscal year ends on December 31, and its reporting currency is the U.S. dollar. The exchange rates are: December 5, 20X8 1 riyal = $ 0.265 December 31, 20X8 1 riyal = 0.262 January 10, 20X9 1 riyal = 0.264 Based on the preceding information, what journal entry would Imperial make on December 31, 20X8, to revalue foreign currency payable to equivalent U.S. dollar value? A. Accounts Payable (SAR) 300 Foreign Currency Transaction Gain 300B. Accounts Payable (SAR) 100 Foreign Currency Transaction Gain 100 C. Foreign Currency Transaction Loss 300 Accounts Payable (SAR) 300 D. Foreign Currency Transaction Loss 200 Accounts Payable (SAR) 200

1. On September 1, 20X1, Cano & Company, a U.S. corporation, sold merchandise to a foreign firm for 250,000 euros. Terms of the sale require payment in euros on February 1, 20X2. On September 1, 20X1, the spot exchange rate was $1.30 per euro. At Cano’s year-end on December 31, 20X1, the spot rate was $1.28, but the rate increased to $1.33 by February 1, 20X2, when payment was received. Required: What foreign currency transaction gain or loss should be recorded in 20X1? What foreign currency transaction gain or loss should be recorded in 20X2? Amount Gain / Loss 1. Foreign currency transaction gain (loss) 20X1 2. Foreign currency transaction gain (loss) - 20X2

Answer 2

Question

Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.

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Answer 3

Question

Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.

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Answer 4

Question

Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.

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Answer 5

Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.

Answer 6

Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

Answer 7

Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

Answer 8

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

Answer 9

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

Answer 10

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

Answer 11

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

Answer 12

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

Answer 13

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

Answer 14

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

Answer 15

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

Answer 16

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

Answer 17

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

Answer 18

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

Answer 19

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

Answer 20

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.

Answer 21

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.

Answer 22

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Answer 23

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Answer 24

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Answer 25

Ch. 11 - Prob. 11.1Q Ch. 11 - Prob. 11.2Q Ch. 11 - The U.S. dollar strengthened against the European...Ch. 11 - Prob. 11.4Q Ch. 11 - Prob. 11.5Q Ch. 11 - How are assets and liabilities denominated in a...Ch. 11 - Prob. 11.7Q Ch. 11 - Prob. 11.8Q Ch. 11 - Prob. 11.9Q Ch. 11 - Distinguish between an exposed net asset position...

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