Cobb Co. purchased merchandise for 300,000 pounds from a vendor in London on November 30, 20X5. Payment

Question:

Cobb Co. purchased merchandise for 300,000 pounds from a vendor in London on November 30, 20X5. Payment in British pounds (£) was due on January 30, 20X6. The exchange rates to purchase 1 pound were as follows:

image text in transcribed

In its December 31, 20X5, income statement, what amount should Cobb report as a foreign exchange gain?

a. $12,000

b. $9,000

c. $6,000

d. $0

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

See More Books

Question Posted: Mar 14, 2024 12:00 AM

See More Questions

13. In center tapped rectifier circuit diode are used. (5 Points) 1 2 3 4
During each cycle, the velocity v (in mm/s) of a piston is v= 18t - 18t, where t is the time (in s). Find the displacements of the piston after 0.85 s if the initial displacement is zero. The...
Q7. Given X = {C, E,!} with the probability (0.4, 0.5, 0.1), "!" is a termination character. (1) Encode the sequence: "EC!" by using Arithmetic coding. (2) Encode the sequence: "EC!" by using Huffman...
Associated Media Graphics (AMG) is a rapidly expanding company involved in the mass reproduction of instructional materials. Ralph Boston, owner and manager of AMG, has made a concentrated effort...
A grade school student plans to build a 35-power telescope as a science fair project. She starts with a magnifying glass with a focal length of 7.5 cm as the eyepiece. What focal length is needed for...
Derive the scaling factor utilized in the two-multiplier lattice of Figure 13.9, in order to generate the one-multiplier lattice of Figure 13.12. + Dj(z) -ajj (X) ajj + zB,(z) Fig. 13.9....
Write a code to test a Gaussian pseudorandom number generator. If you do not have a canned generator available, write a generator based on the Box-Muller algorithm in Appendix I. Apply the following...
The cash account for Interactive Systems at February 28, 2010, indicated a balance of $7,635. The bank statement indicated a balance of $13,333 on February 28, 2010. Comparing the bank statement and...
Construct and group the following data into classes. Calculate the frequency by classes, relative frequencies and cumulative frequencies. A. Calculate the size of each class (use 6 classes) a....
On September 1, 20X5, Johnson Inc. entered into a foreign exchange contract for speculative purposes by purchasing 50,000 for delivery in 60 days. The rates to exchange U.S. dollars for euros follow:...
On October 1, 20X5, Stevens Company, a U.S. company, contracted to purchase foreign goods requiring payment in pesos one month after their receipt in Stevenss factory. Title to the goods passed on...
How could a decision by oil producing countries to invest their petrodollars in public infrastructure projects help the value of the dollar?
The annual income received from a production line in a manufacturing company is $1 million. The annual operating cost for the production line are $150,000 and the annual maintenance cost is $50,000....
The initial cost of a machine for a production facility is $225,000. The machine is expected to last for 10 years with no salvage value. The companys tax rate is 49% and SLD is used to depreciate the...
The initial cost of a proposed heat recovery system is $375,000. The annual operation and maintenance costs are projected to be $12,000. The salvage value of the system at the end of its useful life...
A manufacturing firm entered into a 10-year contract for raw materials. The contract required an initial payment of $14,000 and $22,000 per year beginning at the end of the fourth year. The company...
Two electric motors are available to satisfy a continuous demand of 85 kW. Motor 1 has an initial cost of $5,500 with an operating efficiency of 91%. Motor 2 has an initial cost of $4,000 with an...
Carbon dioxide gas at 580 R is mixed with nitrogen at 500 R in a SSSF insulated mixing chamber. Both flows are at 14.7 lbf/in 2 and the mole ratio of carbon dioxide to nitrogen is 2; 1. Find the exit...
Complete the following acid-base reactions: (a) HCCH + NaH
The following 20X2 consolidated statement of cash flows is presented for Acme Printing Company and its subsidiary, Jones Delivery: Acme Printing acquired 60 percent of the voting shares of Jones in...
Yarn Manufacturing Corporation issued stock with a par value of $67,000 and a market value of $503,500 to acquire 95 percent of Spencer Corporations common stock on August 30, 20X1. At that date, the...
Yarn Manufacturing Corporation issued stock with a par value of $67,000 and a market value of $503,500 to acquire 95 percent of Spencer Corporations common stock on August 30, 20X1. At that date, the...
Create a balance sheet Total Project Budget: $745,700 Technology Development $ Virtual Platform Development 50,000.00 Software integration and customization 20,000.00 Server hosting and maintenance...
You are the manager of the Maker's Mark sales division. Currently, tasting room sales staff are paid an hourly wage of $20. However, you are trying to encourage increased sales. You are considering a...
Let us calculate the present value of cash outflows that will take place as a result of this new debt arrangement with principle of $ 1800000 and interest of 6%. We shall discount the cash flows at...

Cobb Co. purchased merchandise for 300,000 pounds from a vendor in London on November 30, 20X5. Payment

Question:

November 30, 20x5 December 31, 20X5 Spot rate $1.65 $1.62 30-day rate 1.64 1.59 60-day rate 1.63 1.56

Step by Step Answer:

Advanced Financial Accounting

Students also viewed these Business questions