Merchant Company had the following foreign currency
transactions:
The direct exchange rates are as follows:
November 1, 20X6 | €1 = $ | 0.60 | |
December 31, 20X6 | €1 = $ | 0.62 | |
February 1, 20X7 | €1 = $ | 0.58 | |
Required:
Record the T-accounts for the following transactions
(Record the transactions in the given order.)
Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to...
Merchant Company had the following foreign currency transactions: 1. On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of 230,000 by Merchant Company. 2. On November 1, 20x6, Merchant purchased machine parts from a company located in Berlin, Germany. Merchant is to pay 115,000 on February 1, 20X7 The direct exchange rates are as follows: November 1, 20x6 December...
Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of €290,000 by Merchant Company. On November 1, 20X6, Merchant purchased machine parts from a company located in Berlin, Germany. Merchant is to pay €145,000 on February 1, 20X7. The direct exchange rates are as follows: November 1, 20X6 €1 = $...
Merchant Company had the following foreign currency transactions: 1. On November 1, 20X6, Merchant sold goods to a company located in Munich, Germany. The receivable was to be settled in European euros on February 1, 20X7, with the receipt of 260,000 by Merchant Company. 2. On November 1, 20X6, Merchant purchased machine parts from a company located in Berlin, Germany. Merchant is to pay 130,000 on February 1, 20X7. The direct exchange rates are as follows: November , 20X6 December...
Maple Company had the following export and import transactions during 20X5: On March 1, Maple sold goods to a Canadian company for C$49,000, receivable on May 30. The spot rates for Canadian dollars were C$1 = $0.65 on March 1 and C$1 = $0.68 on May 30. On July 1, Maple signed a contract to purchase equipment from a Japanese company for ¥440,000. The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with...
M Company has the following export and import transactions during 20X5: On March 1, M sold goods to a Canadian Company for C$30,000, receivable on May 31. The spot rates for the C$ were C$1 = $0.65 on March 1 and C$1 = $0.68 on May 31. On July 1, M signed a contract to purchase equipment from a Japanese Company for ¥500,000. The equipment was manufactured in Japan during August and was delivered to M on August 31 with...
Nour company (a U.S. company) began operations on December 1, 2020, when Nour Invested $150,000 of her cash savings in the business. In the first month of operations, Nour had the following transactions: December 3, 2020 Bought inventory for 100,000 foreign currency units (FCU) on account. Must be paid with foreign currency units. December 8, 2020 Sold 60% of inventory acquired on 1/12/20 for 32,000 British pounds on account. Invoice denominated in British pounds December 10, 2020 Paid $3,000 in other operating...
5. On December 1, 2018, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD). Collection of the receivable is due on February 1, 2019. Keenan purchased a foreign currency put option with a strike price of $.97 (U.S.) on December 1, 2018. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow: Date Spot Rate Option Premium December 1, 2018 $ 0.97 $ 0.05 December 31, 2018...
Grand Ltd. Is a Canadian company that had the following transactions in 20X7: a. Sold goods to a customer in Belgium on 25 November for 225,000 euros. b. Sold goods to a U.S. customer on 25 November for US$81,000. c. Sold goods on 1 December, to a British customer for 145,000 euros. d. On 15 December, the customer in transaction (a) paid. At year-end, the other two accounts receivable were still outstanding. EXCHANGE RATES Canadian Equivalencies 25 November 01 December...
Part I Maple Company had the following export and import transactions during 20X5: On March 1, Maple sold goods to a Canadian company for C$30,000, receivable on May 30. The spot rates for Canadian dollars were C$1 = $0.65 on March 1 and C$1 = $0.68 on May 30. On July 1, Maple signed a contract to purchase equipment from a Japanese company for ¥500,000. The equipment was manufactured in Japan during August and was delivered to Maple on August...
Harris Inc. had the following transactions: 1. On May 1, Harris purchased parts from a Japanese company for a U.S. dollar equivalent value of $6,000 to be paid on June 20. The exchange rates were May 1 1 yen = $ 0.0070 June 20 1 yen = 0.0075 2. On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,400, to be received on August 10. Brazil’s local currency unit is the real. The...