A U. S. Company's credit sale to an international customer to be paid in a foreign...
A U. S. Company's credit sale to an international customer to be paid in a foreign currency requires using the same exchange rate for the date of sale and the cash payment date.
Select one:
True
False
Homework Answers
False. Sales is to be recorded at the exchange rate on the date of Sale. Foreign Exchange Gain/Loss will be recognised on the date of Cash payment.
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A U. S. Company's credit sale to an international customer to be
paid in a foreign...
Crown Corporation, a United States Company, made a sale to a foreign customer on September 15,...
Crown Corporation, a United States Company, made a sale to a foreign customer on September 15, 2018 in the amount of 100,000 FCU (foreign currency units). On the same day, as a hedge, Crown entered into a forward contract that will require the company to trade 100,000 FCU for dollars on October 15. The company closed its books and prepared financial statements on September 30. Crown's customer paid its account on October 15, 2018, and the forward contract was completed...
Peerless Corporation (a U.S. company made a sale to a foreign customer on September 15, for 102,000 crowns. It r...
Peerless Corporation (a U.S. company made a sale to a foreign customer on September 15, for 102,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply Points $ September 15 September 30 October 15 0.59 0.54 0.50 eBook Print Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select...
Problem 1: Excellsior corp. made a sale to a foreign customer on December 1, 2015 for 50,000 foreign currency units...
Problem 1: Excellsior corp. made a sale to a foreign customer on December 1, 2015 for 50,000 foreign currency units (FCU). Excellsior collected payment on January 31, 2016. The following exchange rates apply: Date 12/01/2015 12/15/2015 12/31/2015 01/31/2016 U.S. Dollar per FCU 0.50 0.52 0.48 0.52 1. What journal entry should be reported by Excellsior on the date of sale? a. Credit Sales: $50,000 b. Credit Sales: F50,000 C. Credit Sales: $25,000 d. Debit Sales: $25,000 e. None of the...
Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for...
Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 103,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply September 15 September 30 October 15 $ e.60 e.66 0.62 Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select " No journal...
Question 9 In a statement of cash flows, cash transactions are classified into three major categories....
Question 9 In a statement of cash flows, cash transactions are classified into three major categories. Which of the following is NOT one of these three categories? Select one: O a. Operating activities. O b. Financing activities. O c. Investing activities. O d. Managing activities. Not yet answered Marked out of 1 Flag question Question 10 Hayden, Inc. purchased knobs from a Greek company for 185,000 euros. On the purchase date the exchange rate was $0.80 per euro, but when...
Question text Consumer tastes at home and abroad, international trade policy, and prices of domestic and...
Question text Consumer tastes at home and abroad, international trade policy, and prices of domestic and foreign goods are all factors that affect a country's exports, imports, and net exports Select one: True False Purchasing-power parity does not hold at all times because the same goods produced in different countries may be imperfect substitutes for each other and many goods are not easily transported. Select one: True False The nominal exchange rate is the rate at which a person can...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 270,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 270,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply: Date November 1, 2017 December 31, 2017 April 30, 2018 Spot Rate $ 0.38 0.36...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 190,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 190,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply: Date Spot Rate Forward Rate (to April 30, 2018) November 1, 2017 $ 0.30 $...
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with...
Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 28,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 28,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various...
Scott Company made a credit sale of $2,500 to a customer on January 15, 2017. The...
Scott Company made a credit sale of $2,500 to a customer on January 15, 2017. The journal entry on January 15, 2017 is: Select one: a. Date Debit Credit 1/15/2017 Accounts Receivable 2500 Sales 2500 b. Date Debit Credit 1/15/2017 Sales 2500 Accounts Receivable 2500 c. Date Debit Credit 1/15/2017 Accounts Receivable 2500 Cash 2500 d. Date Debit Credit 1/15/2017 Cash 2500 Sales 2500
Peerless Corporation (a U.S. company made a sale to a foreign customer on September 15, for 102,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply Points $ September 15 September 30 October 15 0.59 0.54 0.50 eBook Print Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select...
Problem 1: Excellsior corp. made a sale to a foreign customer on December 1, 2015 for 50,000 foreign currency units (FCU). Excellsior collected payment on January 31, 2016. The following exchange rates apply: Date 12/01/2015 12/15/2015 12/31/2015 01/31/2016 U.S. Dollar per FCU 0.50 0.52 0.48 0.52 1. What journal entry should be reported by Excellsior on the date of sale? a. Credit Sales: $50,000 b. Credit Sales: F50,000 C. Credit Sales: $25,000 d. Debit Sales: $25,000 e. None of the...
Peerless Corporation (a U.S. company) made a sale to a foreign customer on September 15, for 103,000 crowns. It received payment on October 15. The following exchange rates for 1 crown apply September 15 September 30 October 15 $ e.60 e.66 0.62 Prepare all journal entries for Peerless in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements. (If no entry is required for a transaction/event, select " No journal...
Question 9 In a statement of cash flows, cash transactions are classified into three major categories. Which of the following is NOT one of these three categories? Select one: O a. Operating activities. O b. Financing activities. O c. Investing activities. O d. Managing activities. Not yet answered Marked out of 1 Flag question Question 10 Hayden, Inc. purchased knobs from a Greek company for 185,000 euros. On the purchase date the exchange rate was $0.80 per euro, but when...
On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 270,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 270,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply: Date November 1, 2017 December 31, 2017 April 30, 2018 Spot Rate $ 0.38 0.36...
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