Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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What amount should be presented as Trade Accounts Receivable in the Statement of Financial Position as of December 31, 2017?
A. 699,000
B. 822,000
C. 849,000
D. 894,500
Mozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$100 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are:1 April 2023 US$1.00 = A$1.3030 June 2023 US$1.00 = A$1.501 August 2023 US$1.00 = A$1.40What is the journal entry to record the sale transaction on 1 April 2023?
a.
DR Accounts Receivable $130 000CR Sales $130 000
b.
DR Accounts Receivable $130 000DR Foreign Exchange Loss $20 000CR Sales $150 000
c.
DR Accounts Receivable $150 000CR Foreign Exchange Gain $20 000CR Sales $130 000
d.
DR Inventory $130 000CR Accounts Payable $130 000
The following accounts are denominated in rubles as of December 31, 2017. For reporting purposes, these accounts need to be stated in U.S. dollars. For each account, indicate the exchange rate that would be used to translate the ruble balance into U.S. dollars under the current rate method. Then, again for each account, indicate the exchange rate that would be used to remeasure the ruble balance to U.S. dollars using the temporal method. The company was started in 2012. The buildings were acquired in 2013 and the patents in 2015.Exchange rates for 1 ruble are as follows:
Chapter 7 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Prob. 1QSCh. 7 - Solstice Company determines on October 1 that it...Ch. 7 - Solstice Company determines on October 1 that it...Ch. 7 - The following list describes aspects of either the...Ch. 7 - Gomez Corp. uses the allowance method to account...Ch. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - On August 2, Jun Co. receives a $6,000, 90-day,...Ch. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Prob. 14QSCh. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Prob. 17ECh. 7 - Prob. 18ECh. 7 - Prob. 1PSACh. 7 - Prob. 2PSACh. 7 - Prob. 3PSACh. 7 - Prob. 4PSACh. 7 - The following selected transaction are Ohlm...Ch. 7 - Prob. 1PSBCh. 7 - At December 31, 2018, Ingleton Company reports the...Ch. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Prob. 7SPCh. 7 - Prob. 1GLPCh. 7 - Prob. 1FSACh. 7 - Prob. 2FSACh. 7 - Prob. 3FSACh. 7 - Prob. 1BTNCh. 7 - Prob. 2BTNCh. 7 - Prob. 4BTNCh. 7 - Sheryl Sandberg and Mark Zuckerberg of Facebook...
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- The following accounts are denominated in rubles as of December 31, 2020. For reporting purposes, these accounts need to be stated in U.S. dollars. For each account, indicate the exchange rate that would be used to translate the ruble balance into U.S. dollars under the current rate method. Then, again for each account, indicate the exchange rate that would be used to remeasure the ruble balance to U.S. dollars using the temporal method. The company was started in 2015. The buildings were acquired in 2016 and the patents in 2018. Exchange rates for 1 ruble are as follows: 2015 1 ruble = $ 0.28 2016 1 = 0.26 2018 1 = 0.25 January 1, 2020 1 = 0.24 April 1, 2020 1 = 0.23 July 1, 2020 1 = 0.22 October 1, 2020 1 = 0.20 December 31, 2020 1 = 0.16 Average for 2020 1 = 0.19arrow_forwardQuestions: 1. The amount to be reported as trade and other receivables in the entity's statement of financial position as of December 31, 2020 is? - need answer and solution for this question please, thank you 2. The adjusted balance of Accounts Receivable as of December 31, 2020 is? 3. The adjusted balance of Notes Receivable as of December 31, 2020 is? 4. The loss from discounting of notes receivables is?arrow_forwardMozzie Ltd has a functional currency of A$. On 1 April 2023, Mozzie Ltd sells goods to a customer on credit terms for US$80 000. On 1 August 2023, cash is received from the customer to settle the invoice Exchange rates are:1 April 2023 US$1.00 = A$1.3030 June 2023 US$1.00 = A$1.551 August 2023 US$1.00 = A$1.45What is the journal entry at the date of cash receipt on 1 August 2023? a. DR. Cash $124 000CR. Foreign Exchange Gain $8 000CR. Accounts Receivable $116 000 b. DR. Cash $55 172CR. Foreign Exchange Gain $3 559CR. Accounts Receivable $51 612 c. DR. Cash $116 000DR. Foreign Exchange Loss $8 000CR. Accounts Receivable $124 000 d. DR. Cash $116 000CR. Foreign Exchange Gain $20 000CR. Accounts Receivable $104 000arrow_forward
- In 2010, LinkedIn reported trade payable obligations totaling $10.8 million in other accrued expenses within accrued liabilities instead of accounts payable. In 2011, note 2 in the 10-K financial statements described the use of accrued liabilities instead of accounts payable as a classification. Do you believe LinkedIn’s accounting qualifies as a financial shenanigan?arrow_forward2) Outline the extracts of Trade Receivable at Statement of Financial Position as at 31 December 2020.arrow_forwardB. Record the entry for acceptance of promissory note in exchange of accounts receivable from McCormick Industries. C. Record the entry for interest accrued on promissory note received from McCormick Industries. D. Record the entry for interest received , from McCormick Industries , on the note's maturity date. E. Record the entry for payment received from McCormick Industries the principal on the note's maturity date.arrow_forward
- PT A has foreign currency balances as of December 31, 2015 as follows: Account name Foreign currency Balance as of December 31, 2015 Bank USD 100 Rp 1.100.000 Account Receivable USD 200 Rp 2.200.000 Account Payable USD 300 Rp 3.300.000 Capital Stock USD 400 Rp 4.400.000 (according to the deed) Required Compute and make adjusting entries on arising if the BI middle rate on December 31, 2015 was 1 USD is Rp 12,000!arrow_forwardSuppose the following information was taken from the 2022 financial statements of FedEx Corporation, a major global transportation/delivery company. (in millions)20222021Accounts receivable (gross)$ 3,650$ 4,530Accounts receivable (net)3,4004,450Allowance for doubtful accounts25080Sales revenue32,97035,470Total current assets7,1427,304 Answer each of the following questions.(a)Calculate the accounts receivable turnover and the average collection period for 2022 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Accounts receivable turnoverenter the accounts receivable turnover in times rounded to 1 decimal place timesThe average collection period for 2022enter the average collection period for 2022 in days rounded to 1 decimal place daysarrow_forwardAnalyzing Accounts ReceivableLupin Pharmaceuticals, an Indian transnational pharmaceutical company, develops and markets a wide portfolio of branded and generic products. The company reported the following in its 2018 annual report. INR millions 2018 2017 2016 Trade receivables $45,961.5 $38,184.8 $40,432.7 Less provision for doubtful receivables 306.9 318.4 448.2 Trade receivables, net $45,654.6 $37,866.4 $39,984.5 Total assets $140,958 $146,544 $127,375 Revenue from operations 158,042 174,943 142,555 Requireda. Calculate days sale outstanding (DSO) for 2018 and 2017.Note: Round amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). DSO for 2018 Answer days DSO for 2017 Answer days b. Determine the total amount that customers owe Lupin each year.Note: Round dollar amount (your final answer) to one decimal place (for example, enter 6.8 for 6.77555). Amount owed in 2018 Answer Amount owed in 2017 Answer Amount owed…arrow_forward
- The 2016 financial statements of Leggett & Platt, Inc. include the following information in a footnote. What are the company’s current gross accounts and other receivables at the end of 2016? (in millions) 2016 2015 Allowance for doubtful accounts $7.2 $9.3 Total accounts and other receivables, net $486.6 $520.2 Group of answer choices $493.8 million $452 million $479.4 million $486.6 millionarrow_forwardWhat is the carrying value of accounts receivable as of December 31, 2016?arrow_forwardHello, please help with letter a. Thank you 1) ABC Corp has Accounts Receivable of FC 400,000 and Accounts Payable FC 300,000 on both March 31 and April 30, 2010. The applicable exchange rates at that date were as follows: March 30 April 30 Spot rate 1FC = .35 US 1FC = .37 US Forward rate(1 month). 1FC= .36 US. 1FC= .39 US a) What is the FX transaction gain or loss on Accounts REeceivable on April 30, 2010? b) What is the FX transaction gain or loss on Accounts Payable on April 30, 2010? c) If on March 31, ABC wishes to hedge its exposure to changing exchange rates what is the appropriate action it will take. Answer by saying whether ABC will enter a spot contract or forward contract and say whether the contract will involve purchasing FC and selling US dollars, or purchasing US dollards and selling FC and specify the appropriate exchange…arrow_forward
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