Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies...

Question

Question

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies...

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies that payment is to be made on March 15 in Mexican Pesos in an amount of 150,000 Pesos. Your company operates on a calendar year basis.

Assume the following exchange rates and dates:

December 15……………..$0.04:1 Peso

December 31……………..$0.05:1 Peso

March 15…………………..$0.06:1 Peso

The journal entry by your company on December 15, the adjusting entry on December 31, and the payment entry on March 15.
Note an explanation of the transaction after each journal entry.
Describe the rationale for each entry, utilizing GAAP standards when possible.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Add a comment

Answer 2

Similar Homework Help Questions

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies...

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies that payment is to be made on March 15 in Mexican Pesos in an amount of 150,000 Pesos. Your company operates on a calendar year basis. Assume the following exchange rates and dates: December 15……………..$0.04:1 Peso December 31……………..$0.05:1 Peso March 15…………………..$0.06:1 Peso Submission Requirements: Prepare a PowerPoint slide presentation illustrating the following: The journal entry by your company on December 15, the adjusting entry...
Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies...

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies that payment is to be made on March 15 in Mexican Pesos in an amount of 150,000 Pesos. Your company operates on a calendar year basis. Assume the following exchange rates and dates: December 15……………..$0.04:1 Peso December 31……………..$0.05:1 Peso March 15…………………..$0.06:1 Peso The journal entries are as follows: Date Account Dr Cr 15-Dec Inventory 6,000 Accounts Payable 6,000 To record purchase of...
Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies...

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies that payment is to be made on March 15 in Mexican Pesos in an amount of 150,000 Pesos. Your company operates on a calendar year basis. Assume the following exchange rates and dates: December 15……………..$0.04:1 Peso December 31……………..$0.05:1 Peso March 15…………………..$0.06:1 Peso Submission Requirements: Prepare a PowerPoint slide presentation answering the following: The journal entry by your company on December 15, the adjusting entry...

On December 15, 2017, Lisbeth Inc. (a U.S. company purchases merchandise inventory from a foreign supplier...

On December 15, 2017, Lisbeth Inc. (a U.S. company purchases merchandise inventory from a foreign supplier for 50,000 schillings. Lisbeth agrees to pay in 45 days after it sells the merchandise. Lisbeth makes sales rather quickly and pays the entire obligation on January 25, 2018. Currency exchange rates for 1 schilling are as follows: 0.30 December 15, 2017 December 31, 2017 917 January 25, 2018 January 31, 2018 Prepare all journal entries for Lisbeth Company in connection with this purchase...
10. On December 1, 2018, El Primero Company purchases inventory from a foreign supplier for 40,000...

10. On December 1, 2018, El Primero Company purchases inventory from a foreign supplier for 40,000 coronas. Payment will be made in 90 days after El Primero has sold this merchandise. Sales are made rather quickly and El Primero pays this entire obligation on February 15, 2019. The following exchange rates for 1 corona apply: Date US Dollar per Corona December 1, 2018 $0.92 December 31, 2018 $0.85 February 15, 2019 $0.90 Prepare all journal entries for El Primero in...
Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with...

Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 10,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 10,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31,...

Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020,...

Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 27,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Icebreaker enters into a forward contract to purchase 27,000 dinars on March 1, 2021.Relevant exchange rates for the dinar on various dates are as follows: DateSpot RateForward Rate(to March 1, 2021)December 1, 2020$4.50$4.575December...
Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment...

Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 31,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 31,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date Spot Rate Forward Rate (to March...
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. Prepare journal entries...

please show work Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December...

please show work Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 17000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 17,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Spot Rate Date...

Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies...

Homework Answers