Determining Year-End Account Balances for Import and Export Transactions
Delaney Inc. has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. For each of the following independent cases, determine the December 31, 20X2, year-end balance in the appropriate accounts for the case. Write "NA" for "not applicable" in the space provided in the following chart if that account is not relevant to the specific case.
Case 1. On November 12, 20X2, Delaney purchased goods from a foreign company at a price of LCU 40,000 when the direct exchange rate was 1 LCU = $0.45. The account has not been settled as of December 31, 20X2, when the exchange rate has decreased to 1 LCU = $0.40.
Case 2. On November 28, 20X2, Delaney sold goods to a foreign entity at a price of LCU 20,000 when the direct exchange rate was 1 LCU = $1.80. The account has not been settled as of December 31, 20X2, when the exchange rate has increased to 1 LCU = $1.90.
Case 3. On December 2, 20X2, Delaney purchased goods from a foreign company at a price of LCU 30,000 when the direct exchange rate was 1 LCU = $0.80. The account has not been settled as of December 31, 20X2, when the exchange rate has increased to 1 LCU = $0.90.
Case 4. On December 12, 20X2, Delaney sold goods to a foreign entity at a price of LCU 2,500,000 when the direct exchange rate was 1 LCU = $0.003. The account has not been settled as of December 31, 20X2, when the exchange rate has decreased to 1 LCU = $0.0025.
Required
Provide the December 31, 20X2, year-end balances on Delaney’s records for each of the following applicable items:
|
|
| Foreign Currency | Foreign Currency |
| Accounts | Accounts | Transaction | Transaction |
| Receivable | Payable | Exchange Loss | Exchange Gain |
Case 1 Case 2 Case 3 Case 4 | ________ | ________ | _________ | __________ |
________ | ________ | _________ | __________ | |
________ | ________ | _________ | __________ | |
________ | ________ | __________ | __________ | |
|
|
|
|
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.