Grammy Ltd., a Canadian company, is dealing with a supplier in a foreign country. On May 1,
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On the due date, Grammy found itself in financial difficulty. The supplier agreed to accept a non-interest-bearing note payable for FF3,000,000 and FF270,000 in cash. The note payable is due July 1, Year 6. Grammy did not hedge the note.
Grammy has a December 31 fiscal year-end.
May 1, Year 4 $1 = FF2
November 1, Year 4 $1 = FF2.6
December 31, Year 4 $1 = FF3.8
Required:
Prepare the journal entries for Year 4 for the accounts payable and the note payable.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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