Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
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Question
Chapter 19, Problem 19.2P
Summary Introduction
To determine: Country U dollar translated figures for the years December 31,2019 and December 31,2020.
Introduction:
During the purchase or sale of the transaction date there might be a loss or gain in the exchange when the exchange rates changes. The foreign currency will take loss or gain during this action.
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Accounting for Business Combinations:
Honesty Company accepted a sales order from a Singaporean Company on October 9, 2022. The contract price was S$100,000. The merchandise was delivered on November 19, 2022. The invoice was dated November 15, 2022, FOB Shipping Point. Full payment was received on January 15, 2023. The spot rate for the Singaporean Dollar on the respective dates is as follows (see image below).
Answer the follwing subquestions:
a. How much is Foreign Exchange Gain (Loss) to be reported in 2022?
b. How much is the Sales to be reported in 2022?
__________________
4) Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31, 2020, Brief correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Brief collected the receivable on February 15, 2021, the U.S. dollar equivalent was $120,000. In Brief’s 2021 consolidated income statement, how much should it report as a foreign exchange gain?
a) $–0–
b)$10,000
c) $15,000
d) $25,000
Ganado Europe (B). Using facts in the chapter for Ganado Europe, assume as in Problem 11.1 that the exchange rate on January 2, 2020, in Exhibit 11.5 dropped from $1.2000 = €1.00 to $0.9000 = €1.00 (Rather than to $1.000/€). Recalculate Ganado Europe’s translated balance sheet for January 2, 2020, with the new exchange rate using the temporal rate method.
What is the amount of translation gain or loss?
Where should it appear in the financial statements?
Why does the translation loss or gain under the temporal method differ from the loss or gain under the current rate method?
Chapter 19 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Ch. 19.1 - Prob. 19.1RQCh. 19.1 - Prob. 19.2RQCh. 19.1 - Prob. 19.3RQCh. 19.1 - Prob. 19.4RQCh. 19.2 - Under FASB No. 52, what are the translation rules...Ch. 19.3 - Prob. 19.6RQCh. 19.3 - Explain how differing inflation rates between two...Ch. 19.3 - Discuss macro and micro political risk. What is...Ch. 19.4 - Prob. 19.9RQCh. 19.4 - Prob. 19.10RQ
Ch. 19.4 - Prob. 19.11RQCh. 19.4 - Prob. 19.12RQCh. 19.5 - Prob. 19.13RQCh. 19.5 - Prob. 19.14RQCh. 19.5 - Prob. 19.15RQCh. 19.6 - Prob. 19.16RQCh. 19 - Prob. 19.1WUECh. 19 - Prob. 19.2WUECh. 19 - Prob. 19.3WUECh. 19 - Prob. 19.4WUECh. 19 - Prob. 19.5WUECh. 19 - Prob. 19.1PCh. 19 - Prob. 19.2PCh. 19 - Prob. 19.3PCh. 19 - ETHICS PROBLEM Is there a conflict between...
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