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(NEED HELP WITH D. )
Since the transaction is assumed to be denominated in dollars that means both parties have agreed for settlement in dollars itself. Therefore the rate at which the transaction is first recorded on Dec.10 will be the same amount which will be settled for on Jan.10 As such we will record the transaction in dollars using the spot rate on 10th Dec, there will be no requirement for adjustment on 31 Dec as the currency is denominated in dollars and on 10 Jan the same is settled in full. Below are the entries:
Dec.10 Accounts Receivable $25,100
To Sales $25,100
(Being recording of sales transaction of 7 computers for 9,036,000 pesos@ 360 pesos per dollar)
Dec.31 No entry $0
(No entry required for adjustment as on 31. Dec since the transaction is denominated in dollars hence no transaction gain or loss)
Jan. 10 Cash $25,100
To Accounts Receivable $25,100
(Being settlement of sale transaction fully in cash)
Exercise 12-2 During December of the current year, Teletex Systems, Inc., a company based in Seattle,...
Exercise 12-2 During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 10 Sold seven office computers to a company located in Colombia for 9,036,000 pesos. On this date, the spot rate was 360 pesos per U.S. dollar. 12 Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 590,000 Taiwan dollars. The direct exchange spot rate on this date was $0.0387. (a) Prepare journal...
Question3: During December 2018 of the current year, Earmark Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Inventory delivered on 12/10/2018 and 2,135,250 pesos received on 1/10/2019 Dec. 10, Sold Nine office computers to a company located in Colombia for 2,135,250pesos. On this date, the spot rate was 365 pesos per U.S. dollar. 1. Prepare the journal entry on the books of Earmark Systems, Inc. (periodic method) 2. Prepare journal entry necessary to adjust the...
The answer above was given in a prior post but it was incorrect as well. The way i understand the question is that if the company sold seven office computers for 7,992,000 dollars, what would the entry look like. However, that didnt work. Exercise 12-2 During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 10 12 Sold seven office computers to a company located in Colombia for 7,992,000...
Current Attempt in Progress On December 31, the adjusted trial balance of Marin Inc. shows the following selected data: Accounts receivable Interest expense $9,780 12,850 Service revenue Interest payable $112,400 6,490 Analysis shows that adjusting entries had been made, and included above, for (1) $9,780 of services performed but not bille (2) $6,490 of accrued but unpaid interest. Prepare the closing entries for the temporary accounts at December 31. (Credit account titles are automatically indented w amount is entered. Do...
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Exercise 10-9 On January 1, Crane Company issued S420,000, 896, 20-year bonds at face value. Interest is payable annually on January 1 Prepare journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE Prepare journal entry to record the accrual of interest on December 31. (Credit account titles are...
On January 1,Crane Company issued $372,000, 7% , 10-year bonds at face value. Interest is payable annually on January 1 Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 eTextbook and Media List of Accounts Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when...
On January 1, 2020, Kingbird, Inc. issued $2,680,000 face value, 12%, 10-year bonds at $2,534,577. This price resulted in an effective-interest rate of 13% on the bonds. Kingbird uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account...