Heritage, Ltd., is a U.S. company doing business in 20 countries. Local exchange rates f...

Heritage, Ltd., is a U.S. company doing business in 20 countries. Local exchange rates for U.S. $1 at year-end before the introduction of the Euro were

The company’s records indicate the following transactions for the year:

1. Purchased inventory from Roma Fine Skins in exchange for a note payable of

2. While the exchange rate was peseta 100 to $1, sold raw materials to Lopez Trading Company in exchange for a PTA 270,000 note receivable.

3. While the exchange rate was £.5 to $1, sold equipment to U.K. Copies, Ltd., in exchange for an account receivable of £360,000.

4. Purchased from Containers Ltd. (Australia) spare bottles for $A149,500 (Australian).

The exchange rate, when the accounts payable was incurred, was $A1.25 (Australian) to $1.

Required:

a. What is the U.S. dollar equivalent for the above transactions?

b. Record the transactions in journal entries.

c. If these payables and receivables are outstanding at year-end, would there be an exchange gain or loss for each of the above transactions?