Homework Answers
Assuming US Corp. has a December-31 year end,
So, In case of Foreign transaction the Fixed asset are recorded at the closing rate i.e. December-31.
So, any gain/loss from the exchange rate shall be transferred to Profit/Loss A/c.
1. Equipment shall be recorded at 38,000 FC(100,000 FC * $0.38) as on 31-December
And, Exchange Loss of 3,000 FC{100,000 F C * $0.03 ($0.38- $0.35 )} shall be transferred to Profit and Loss A/c for 2019
2. Exchange gain of $2,000 {100,000 FC * $0.02($0.36-$0.38)} shall be transferred to P&L A/c.
3. As there is no payment made in 2019 so there will be no exchange gain/loss to be recorded in 2019.
4. The exchange rate difference between the date of Purchase and date of payment i.e. $1,000{100,000 FC * $0.01 ($0.36-$0.35)} is an exchange loss.
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1:۵۳ م 31 ©... bös ösljäll - assignment_... 1a0da0aa87 > للقراءة فقط - لا يمكنك حفظ...
A 1:0€ 3D ... bös öljäll - assignment_... 1a0da0aa87 > للقراءة فقط - لا يمكنك حفظ...
A 1:0€ 3D ... bös öljäll - assignment_... 1a0da0aa87 > للقراءة فقط - لا يمكنك حفظ التغييرات . TO PER 131 Page 3 INTERNATIONAL ACCOUNTING (020114600). FACULTY OF ADMIENISTRIVE AND FINANCIAL SCIENCES DEPARTMENT OF ACCOUNTING QUESTION NO. 3: (8 POINTS) 1. AUS manufacturer has sold goods to a foreign firm for a sale price of 400,000 FC on 15/12 2019. The invoice is due 25/02/2020. The US. Firm fiscal year is 31/12 Given the following exchange rates 15/12/2019 IFC =...
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The following is information for Sarasota Corp. for the year ended December 31, 2020: $1,410,000 Loss on inventory due to decline in net realizable value $84,000 Sales revenue Unrealized gain on FV-OCl equity investments 38,000 Loss on disposal of equipment 25,000 Interest income 5,000 53,000 Cost of goods sold Selling expenses Administrative expenses Dividend revenue 846,000 70,500 44,000 17,000 Depreciation expense related to buildings omitted by mistake in 2019 Retained earnings at December 31, 2019 Loss from expropriation of land...
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