Question

Problem 12-1 GAF manufactures electrical cells at its St. Louis facility. The company’s fiscal year-end is September 30. It has adopted the perpetual inventory cost flow method to control inventory costs. The company entered into the following transactions during the month of September. All exchange rates are direct quotations. Date Transaction Billing Amount Rate of Exchange 2014 Sept. 5 Exported 10 electrical cells to a company located in Argentina. Cost per unit, $850. 17,474 pesos $1.1291 9 Received raw materials ordered from a British company. The goods were shipped FOB destination and had not been recorded on the books of GAF, Inc. 12,080 Pounds 1.6821 14 Exported 12 electrical cells to a company domiciled in Norway. Cost per unit, $870. 161,694 Krone 0.1450 30 End of fiscal year-end.    Peso 1.1091    British pound 1.6911    Krone 0.1530 Date Transaction Billing Amount Rate of Exchange Oct. 5 Received full payment for the 10 units sold on September 5. 1.1190 9 Paid British company in full for raw materials purchased September 9. 1.5948 30 Received full payment for 12 units sold on September 14. 0.1440

(a) Prepare the journal entries required on the books of GAF to record the transactions and year-end adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125.) Date Account Titles and Explanation Debit Credit Sept. 5Sept. 9Sept. 14Sept. 30Oct. 5Oct. 9Oct. 30 (To record sales) (To record cost of goods sold) Sept. 5Sept. 9Sept. 14Sept. 30Oct. 5Oct. 9Oct. 30 Sept. 5Sept. 9Sept. 14Sept. 30Oct. 5Oct. 9Oct. 30 (To record sales) (To record cost of goods sold) Sept. 5Sept. 9Sept. 14Sept. 30Oct. 5Oct. 9Oct. 30 (To record gain or loss on accounts receivable of Sept. 5 sales) (To record gain or loss on accounts payable) (To record gain or loss on accounts receivable of Sept. 14 sales) Sept. 5Sept. 9Sept. 14Sept. 30Oct. 5Oct. 9Oct. 30 Sept. 5Sept. 9Sept. 14Sept. 30Oct. 5Oct. 9Oct. 30 Oct. 30

HELP PLEASE!!

Answer 1

Dear Student , below answer completely based on different exchange rate  and implication on Exchange gain / loss account in relates to receivable and payable . Movement of opening exchange rate vs Closing exchange rate and impact on Exchange gain or loss.

Thank you!!

GAF manufactures electrical cells at its St. Louis facility.
The company fiscal year ended - Sept 30
Company adopted perpetual Inventory cost flow method to control Inventory cost
Date	Details		Debit($)	Credit($)
Sept 5	Account Receivable		19,730
	Sales			19,730
	( Exported 10 electrical cell
	to a company location
	Argentina. Cost per unit $ 850
	Billing Amount -17 474 Peso
	rate of Exchange $-1.1291
Sept 5	Cost of goods Sold		8500
	Inventory			8500
	( to account 10 electrical cell *@$850)
Sept 9	Inventory		20,320
	Accounts payable			20,320
	( receiaved raw material ordered
	from a British company . The goods
	were shipped FOB destination
	Billing Amount -12080 Pounds
	rate of Exchange $-1.6821
Sept 14	Account Receivable		23,446
	Sales			23,446
	Exported 12 electrical cells to company
	Cost per unit $ 870)
	Billing Amount -161694 Krone
	rate of Exchange $-0.1450
Sept 14	Cost of goods Sold		10440
	Inventory			10440
	( to account 12 electrical cell *@$870)
Sept 30	End of fiscal Year
	Peso - 1.1091
	British Pound -1.6911
	Krone -0.1530
	Adjustment entry
	Change in Exchange Rate
	Exchange rate on 05thSept$		1.1291	a
	Exchange rate on 30th Sept$		1.1091	b
	So loss on Exchange rate$		0.02	(a-b)
	Billing Amount - Peso		17 474
Date	Details		Debit($)	Credit($)
Sept 30	Exchange Loss		349
	Accoutn Receivable			349	(17474*$0.02)
	( Adjusted Exchange rate - Loss accounted)
	Exchange rate on 09thSept$		1.6821	a
	Exchange rate on 30th Sept$		1.6911	b
	So loss on Exchange rate$		-0.009	(a-b)
	Billing Amount - Pounds		12080
Date	Details		Debit($)	Credit($)
Sept 30	Exchange Loss		109		(12080*$0.009)
	Accoutn Payable			109
Sept 30	Exchange rate on 14thSept$		0.145
	Exchange rate on 30th Sept$		0.153
	So loss on Exchange rate$		-0.008
	Billing Amount - Korean		161694
Date	Details		Debit($)	Credit($)
Sept 30	Accoutn Receivable		1,294		(161694*$0.008)
	Exchange gain			1,294
Oct 5	Received in Full Payment for 10 units sold
	on Sept 5
	Interesting to note that change in Exchange rate
	closing rate - 30th Sept		1.1091
	Received Oct 5 - Exchange rate		1.119
Date	Details		Debit($)	Credit($)
Oct 5	Cash 17474* 1.119		19,553.41
	Exchange Gain /loss ( balacing Number			172.99
	Account Receivable-17474* 1.1091			19,380.41
	Billing Amount -17 474 Peso
Oct 9	Account Payable 12080*1.6911		20,428
	Exchange Gain /loss ( balacing Number			1,163
	Cash-12080*1.5948			19,265
	Interesting to note that change in Exchange rate
	closing rate - 30th Sept		1.6911
	Payment Oct 9 - Exchange rate2		1.5948
	Gain in Exchange( less cash outflow		0.0963
	Billing Amount - Pounds		12080
Oct 30	Interesting to note that change in Exchange rate
	closing rate - 30th Sept		0.153
	Received Oct 30 - Exchange rate		0.144
	Loss in Exchange( less cash Inflow)		0.009
	Billing Amount - Korean		161694
Date	Details		Debit($)	Credit($)
Oct 30	Cash 161694*0.144		23,284
	Exchange Gain /loss ( balacing Number		1,455
	Account Receivable -161694*0.153			24,739