On December 1 20X1 Rone Imports a U S company purchased
On December 1, 20X1, Rone Imports, a U.S. company, purchased clocks from Switzerland for 15,000 francs (SFr) to be paid on January 15, 20X2. Rone's fiscal year ends on December 31, and its reporting currency is the U.S. dollar. The exchange rates are
December 1, 20X1 ...... 1 SFr = $0.70
December 31, 20X1 ..... 1 SFr = 0.66
January 15, 20X2 1...... SFr = 0.68

Required
a. In which currency is the transaction denominated?
b. Prepare journal entries for Rone to record the purchase, the adjustment on December 31, and the settlement.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help