Question

The following information applies to the questions displayed below. Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2015 and 2016 2015 Ape Sold merchandise to Salinas & Sons of Mexico for $5.938 cash The exchange rate for pesos is $0.1043 on this day Sold merchandise on credit to Sumito Corp. in Japan. The price of 1.5 million yen is to be paid 120 days from the date of sale. The exchange rate for yen is $0.0094 on this day O Sold merchandise for 19000 pounds to Smithers Ltd. of Great Britain, payment in ful to be received in 90 days. The exchange rate for pounds is $1.4566 on this day No Received Sumito's payment in yen for its July 21 purchase and immediately exchanged the yen for dollars. The exchange rate for yen is $0 0092 on this day. Dec 22 Sold merchandise for 17.000 ringgits to Hamid Albar of Malaysia, payment in full to be received in 30 days. On this day the exchange rate for ringgits is $0.450L De Recorded adusting entries to recognize exchange gains or losses on Doering's annual financial statements. Rates for exchanging foreign currencies on this day follow 2016 Received ut payment in pounds from Smithers for the October 14 sale and immediately exchanged the pounds for dollars. The exchange rate for pounds is $14699 on this day Received Hamid Albar's full payment in tinggits for the December 20 sale and immediately exchanged the ringgits for dollars. The exchange rate for ringgits is $0.4420 on this day Required: 1. Prepare journal entries for the Doering transactions and adjusting entries. Do not round your intermediate calculations. Enter your answers in whole dollars.) Journal entry worksheet Sold merchandise Salines & Sons of Mexico for $5.931 cash. The exchange

Answer 1

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Solution: Requite ment 0: Journal & Adjusting entries 2015 Date particulavs or CY Apr 8 Cash Ale or $ 5938 To Sales Ale $ 5938 July : 21 A ccounts Receivable-Sunmito Ale Or $ 14100 To Sales Ale $14 100 [1500 000 yen * $0-00 94/ yen] Oct 14 Acconts $27675 Receivable - Smithers Ale Dr To Sales Alc [19000 E x $1.4566/€) Cash Alc Nov 18 $13800 $ 300 Foveign Exchange loss ale Dr To Accoonts Receivable -Sumito $14100 [ s00 00 co0 yen x $0.0092/yen] Dec 20 Accoonts Receivable - Hamid Albar Alc DY $ 7652 To sales Ale 17652 [900 vinggas x $ orer01/ringgits]

Dec 31 Accants Receivable Smithers Alc or $103 To Foxeign Exchange gain Woricing : original measore year-end measure = 19000 E x $ 1.4586 E 19000 E X $ 1•4620/E =$ 27625 = $ 27778 Gain for the period $ 103 -> Foreign exchange Dec 31 Loss Alc 1)r $77 To Accounts Receivable - Hamid Albar $77 working: original Measure 17000 vinggits x $ oʻ4501 ringgits= 7652 19000 vinggits A 40-4456 vinggins = 7575 year-end Measure %3D the period Loss for $ 77

2016 Date particolars Jan 12 Cr cash" Ale or $ २११२१ To Accounts Receivable" - Smithers $27778 To Foreign exchange gain I 150 working : 19000 E X $ 1.4699 E $ 27928 ** $27675 +$103 =$ 27778 Jan 19 Cash AlC $ 7574 $ 61 Forergn exchange Loss ale Dr To AccOunts 1Receivable - Harrid 17575 Albay working: * 17000 vírgirs X $ 0-4420/ringgitS =$ 7514 $ 7652 -$ 77 = 7575