6. A U.S. company executed a series of transactions in a foreign country during 2021. The appropriate exchange rates during 2021 were as follows: Date June 1, 2021 August 1, 2021 December 31, 2021 Exchange Rate $.77= §1 $.80 §1 $.83 §1 The following transactions occurred during 2021: June 1 Bought inventory of $50,000 on credit. Aug. 1 Sold all inventory for $65,000 on credit. Required: Prepare all journal entries in U.S. dollars along with any December 31, 2021 adjusting entries. Show your work

6. A U.S. company executed a series of transactions in a foreign country during 2021. The appropriate exchange rates during 2021 were as follows: Date June 1, 2021 August 1, 2021 December 31, 2021 Exchange Rate $.77= §1 $.80 §1 $.83 §1 The following transactions occurred during 2021: June 1 Bought inventory of $50,000 on credit. Aug. 1 Sold all inventory for $65,000 on credit. Required: Prepare all journal entries in U.S. dollars along with any December 31, 2021 adjusting entries. Show your work

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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On September 1, 2020, Creed Co. sold merchandise to a foreign entity for 250,000 francs. Terms of the sale require payment in francs on February 1, 2021. On September 1, 2020, the spot exchange rate was P1.2 per franc. On December 31, 2020, the spot rate was P1.19, but the rate increased to P1.22 by February 1, 2021, when payment was received. Required: Provide journal entries in 2020 and 2021.
1 . PL Co purchased goods on credit from a US supplier costing $US 225,000 on 5th June 2020 when the exchange rate was A$1 = US0.69 . On 30 June 2020, balance date , the exchange rate was A$1 = US0.72 . PL Co paid the US supplier on 7th July 2020 when the exchange rate was A$1 = 0.74. Required : Prepare the journal entries for the above
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Matthias Corp. had the following foreign currency transactions during 2020: Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $63,200 and paid the invoice on April 20 at the U.S. dollar equivalent of $51,400. On September 1, borrowed the U.S. dollar equivalent of $304,000 evidenced by a note that is payable in the lender's local currency in one year. On December 31, the U.S. dollar equivalent of the principal amount was $326,000. In Matthias’s 2020 income statement, what amount should be included as a net foreign exchange gain or loss? Multiple Choice $10,200 loss $22,000 gain $33,800 loss $11,800 gain
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2.Jameson Ltd purchased goods on credit from a European supplier costing Euros 80,000 on 29th May 2020 when the exchange rate was A$1 = O.78 Euros. At 30th June 2020, its balance date . the exchange rate was A$1 = 0.79 Euros . Jameson Ltd paid the European supplier on 5th July 2020 when the exchange rate was A$1= 0.76 Euros Required: Prepare the journal entries for the above