The White Co. has the Philippine pesos as its functional currency. On October 16, 2020, White ordered some inventory from a foreign supplier and agreed a purchase price of 160,000 local currency units (LCU). The inventory was received on November 15, 2020. At December 31, 2020, the inventory remained on hand and the trade payable balance for the inventory purchase remained outstanding. The supplier was paid on January 27, 2021 and the inventory was sold on January 31, 2010. The following information about exchange rates is available: October 16, 2020 1.00 = 2.60 LCU November 15, 2020 December 31, 2020 January 27, 2021 1.00 = 2.50 LCU 1.00 = 2.40 LCU 1.00 = 2.25 LCU According to IAS 21, The Effects of Changes in Foreign Exchange Rates, at what amount should the trade payable balance due to the supplier be presented in the statement of financial position at December 31, 2020?

The White Co. has the Philippine pesos as its functional currency. On October 16, 2020, White ordered some inventory from a foreign supplier and agreed a purchase price of 160,000 local currency units (LCU). The inventory was received on November 15, 2020. At December 31, 2020, the inventory remained on hand and the trade payable balance for the inventory purchase remained outstanding. The supplier was paid on January 27, 2021 and the inventory was sold on January 31, 2010. The following information about exchange rates is available: October 16, 2020 1.00 = 2.60 LCU November 15, 2020 December 31, 2020 January 27, 2021 1.00 = 2.50 LCU 1.00 = 2.40 LCU 1.00 = 2.25 LCU According to IAS 21, The Effects of Changes in Foreign Exchange Rates, at what amount should the trade payable balance due to the supplier be presented in the statement of financial position at December 31, 2020?

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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