Prepare the journal entries for the settlement of the contracts on April 1, 2021 Question 3Chrysler Exporters Inc., a US wholesaler is engaged in foreign trade. The following transactionswere recorded:On December 1, 2020, Chrysler Exporters Inc., purchased merchandise from Chang's Ltd aI.Japanese manufacturer. The invoice was for ¥500,000, payable on April 1, 2021.On the same day, Chrysler Exporters Inc. accepted a forward exchange contract (forwardII.contract) to buy ¥500,000 on April 1, 2021.On April 1, 2021, the ¥500,000 was delivered on the contract and the supplier was settled.The spot rates and the forward rates were as follows:III.IV.DateSpot rateForward ratefor delivery (¥) on April 1, 2021December 1, 2020$0.0084$0.0089December 31, 20200.00830.0088April 1, 20210.0092

Question 3 Chrysler Exporters Inc., a US wholesaler is engaged in foreign trade. The following transactions were recorded: On December 1, 2020, Chrysler Exporters Ic., purchased merchandise from Chang's Ltd a Japanese manufacturer. The invoice was for ¥500,000, payable on April 1, 2021. II. 1. On the same day, Chrysler Exporters Inc. accepted a forward exchange contract (forward contract) to buy ¥500,000 on April 1, 2021. 2 II. On April 1, 2021, the ¥500,000 was delivered on the contract and the supplier was settled. The spot rates and the forward rates were as follows: IV. Date Spot rate Forward rate for delivery (¥) on April 1, 2021 December 1, 2020 $0.0084 $0.0089 December 31, 2020 0.0083 0.0088 April 1, 2021 0.0092

Question 3 Chrysler Exporters Inc., a US wholesaler is engaged in foreign trade. The following transactions were recorded: On December 1, 2020, Chrysler Exporters Ic., purchased merchandise from Chang's Ltd a Japanese manufacturer. The invoice was for ¥500,000, payable on April 1, 2021. II. 1. On the same day, Chrysler Exporters Inc. accepted a forward exchange contract (forward contract) to buy ¥500,000 on April 1, 2021. 2 II. On April 1, 2021, the ¥500,000 was delivered on the contract and the supplier was settled. The spot rates and the forward rates were as follows: IV. Date Spot rate Forward rate for delivery (¥) on April 1, 2021 December 1, 2020 $0.0084 $0.0089 December 31, 2020 0.0083 0.0088 April 1, 2021 0.0092

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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
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. Sold all inventory for $65,000 on credit. Aug. 1 Required: Prepare all journal entries in U.S. dollars along with any December 31, 2021 adjusting entries. Show your work
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
Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2019 and 2020. 2019 Apr. 8 Sold merchandise to Salinas & Sons of Mexico for $5,938 cash. The exchange rate for pesos is $0.1043 on this day. July 21 Sold merchandise on credit to Sumito Corp. in Japan. The price of 1.5 million yen is to be paid 120 days from the date of sale. The exchange rate for yen is $0.0094 on this day. Oct. 14 Sold merchandise for 19,000 pounds to Smithers Ltd. of Great Britain, payment in full to be received in 90 days. The exchange rate for pounds is $1.4566 on this day. Nov. 18 Received Sumito’s payment in yen for its July 21 purchase and immediately exchanged the yen for dollars. The exchange rate for yen is $0.0092 on this day. Dec. 20 Sold merchandise for 17,000 ringgits to Hamid Albar of Malaysia, payment in full to be received in 30 days. On this day, the exchange rate for ringgits is $0.4501. Dec. 31 Recorded adjusting entries…
1. On November 1, 2020, an entity acquired on account goods from a foreign supplier at a cost of $3,000. The accounts payable are paid on January 30, 2021. On December 1, 2020, an entity sold on account goods to a foreign customer at a selling price of $2,500. The accounts receivable is collected on February 28, 2021. The entity is operating in Philippine economy wherein the functional currency is the Philippine Peso. The following exchange rates are provided Buying spot rate Selling spot rate November 1, 2020 P40 P42 December 1, 2020 39 40 December 31, 45 45.5 2020 January 30, 2021 45.5 46 February 28, 2021 46 46.5 What is the carrying amount of monetary asset on December 31, 2020?
Question 1: During December 2019 of the current year, Wiley Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 12: Purchased computer chips from a Taiwan company. Contract was denominated in 125,000 Taiwan dollars. Direct exchange rate on this date was $.0391. Inventory received 12/12/2019 and 125,000 Taiwan dollars paid on 1/10/2020 Assume that on December 31 the direct exchange rates was Taiwan dollar $.0351. Assume that the direct exchange rate on the settlement date was Taiwan dollar $.0398. a) Prepare the journal entry for purchase on the books of Wiley Systems, Inc. b) Prepare journal entry necessary to adjust the account as of December 31 c) Prepare journal entry to record settlement of account on January 10. Prepare journal entry to record settlement of account on January 10.
Accounting Car Corp. (a U.S.-based company) sold parts to a Japanese customer on December 1, 2020, with payment of 10 million Japanese yen to be received on January 31, 2021. The following exchange rates applied: Date Spot rate Forward rate to 01/31/21 0.00090 0.00093 0.00092 0.00098 0.00095 December 1, 2020 December 31, 2020 January 31, 2021 Assuming a forward contract was entered into, what would be the net impact on Car Corp.'s 2020 income statement related to this foreign currency transaction? Assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .9901. A. $295.05 (loss). B. $ 300 (gain). C. $ 300 (loss). D. $ 700 (gain). E. $ 700 (loss). 0.00095
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The White Co. has the Philippine pesos as its functional currency. On October 16, 2020, 3. 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 1.00 = 2.50 LCU 1.00 = 2.40 LCU January 27, 2021 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?
3. On October 1, IJR International received an order from a Japanese customer for 2,500,000 Yen to be paid upon receipt of the goods, scheduled for December 1. The rates for $1 US are as follows: Spot rate, October 1 Forward rate, December 1 Spot rate, December 1 Exchange Rates for $1 for Yen 83 82 81 (a) Calculate what IJR would receive from the Japanese customer in US dollars using the spot rate at the time of the order. (b) Calculate what IJR would receive from the Japanese customer in US dollars using the spot rate at the time of payment. (c) Calculate the amount that IJR expects to receive on December 1 if IJR's policy is to hedge foreign currency transactions. (d) How can IJR protect itself from the risk of the transaction?
Problem 1: On November 1, 2020, an entity acquired on account goods from foreign supplier at a cost of 1,000 USD. The accounts payable are paid on January 30, 2021. On December 1, 2020, an entity sold on account the said goods to a foreign customer at a selling price of 1,500 USD. The accounts receivable is collected on February 28, 2021. The entity is operating in Philippine economy wherein the functional currency is the Philippine Peso. The following direct exchange rates are provided: 12/1/20 12/21/20 1/30/21 11/1/20 2/28/21 Buy Sell 40 39 45 43 42 42 40 47 46 45 What is the sales revenue to be reported by the entity for the year ended December 31, 2020? b. What is the cost of sales to be reported by the entity for the year ended December 31, 2020? What is the book value of accounts receivable on December 31, 2020? d. What is the book value of accounts payable on December 31, 2020? What is the net foreign currency gain or loss for the year ended December 31, 2020? а. С. е.
Bento Corporation (a U.S.-based company) acquired merchandise on account from a foreign supplier on November 1, 2020, for 100,000 crowns. It paid the foreign currency account payable on January 15, 2021. The following exchange rates are relevant: Date U.S. Dollar per Crown November 1, 2020 $ 0.754 December 31, 2020 $ 0.742 January 15, 2021 $ 0.747 How does the fluctuation in the U.S. dollar per crown exchange rate affect Bento’s 2020 income statement? How does the fluctuation in the U.S. dollar per crown exchange rate affect Bento’s 2021 income statement?

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