Assume that Computer City Stores completed the following foreign currency transactions: Sep 9 Purchased DVD players as

Question:

Assume that Computer City Stores completed the following foreign currency transactions:
Sep 9 Purchased DVD players as inventory on account from Sona, a Japanese company. The price was 800,000 yen, and the of the yen was $0.0085.
Oct 18 Paid Sona when the was $0.0084.
22 Sold merchandise on account to CoCo, a French company, at a price of 50,000 euros. The was $1.25.
28 Collected from CoCo when the was $1.21.

Requirements
1. Journalize these transactions for Computer City. Focus on the gains and losses caused by changes in foreign-currency rates. (Round your answers to the nearest whole dollar.)
2. On September 10, immediately after the purchase, and on October 23, immediately after the sale, which currencies did Computer City want to strengthen? Which currencies did in fact strengthen? Explain your reasoning.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...