On October 15, 2014, Napole Corporation, a French company, ordered merchandise listed on the internet for 20,000 euro from Adams Corporation, a U.S. corporation. The euro rate was $1.20 (U.S. dollars) on October 15. On November 15, 2014, Adams shipped the goods and billed Napole the purchase price of 20,000 euro when the euro rate was $1.30. Napole paid the bill on December 10, 2014, and Adams immediately exchanged the 20,000 euro for US dollars when the euro rate was $1.28 on December 10, 2014.

Compute the foreign currency gain or loss on the December 31, 2014 financial statements of Adams and show the related journal entries.

Answer rating: 100% (QA)

Particulars Amount Purchase value on Nov 15 2014 20000 13 26000 Payment value Dec 10 ... View the full answer