Assume that Cooper Stores completed the following foreign- currency transactions:
Jun 9 Purchased DVD players as inventory on account from Moshu, a Japanese company. The price was 560,000 yen, and the exchange rate of the yen was $ 0.0078.
Jul 18 Paid Moshu when the exchange rate was $ 0.0072.
22 Sold merchandise on account to Le Fleur, a French company, at a price of 45,000 euros. The exchange rate was $ 1.17. Ignore cost of goods sold.
28 Collected from Le Fleur when the exchange rate was $ 1.14.
1. Journalize these transactions for Cooper. Focus on the gains and losses caused by changes in foreign-currency rates. Round your answers to the nearest whole dollar.
2. On June 10, immediately after the purchase, and on July 23, immediately after the sale, which currencies did Cooper want to strengthen? Which currencies did in fact strengthen? Explain your reasoning.