It's a lot of moola... Americo is an import-export company domiciled in the United States. On...

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"It's a lot of moola..." Americo is an import-export company domiciled in the United States. On December 31, the last day of its fiscal year, Americo entered into a transaction with Overseas Supply Company, located in Chaipan, a Pacific Rim country, to purchase 2,000 video cassette recorders (VCRs). The transaction was denominated in the foreign currency unit of Chai pan, the moola (M). The price established was M500 per VCR, for a total price of M1,000,000. The transaction will be completed in another day or two, and because Americo only had M700,000 on hand, it obtained the remaining M300,000 needed through the foreign exchange office of its local bank on December 31. The M700,000 Americo had on hand was the result of two recent events. On December 15, Americo entered into a transaction with another Chaipan company, Orient Traders, for the sale by Americo of 5,000 tons of grain for M100 per ton. The transaction was fully consummated on that date, with title to the grain (in a grain elevator at the port) passing to Orient Traders in exchange for the M500,000, which was delivered to Americo. The other M200,000 on hand was the result of an aborted transaction in which Americo was to have purchased portable radios from another company in Chaipan. Americo had acquired the moola through the foreign exchange office of its local bank on December 1 in anticipation of completing the deal that day. However, when the radios turned out to be of substandard quality, Americo rejected them and canceled the deal. Americo's controller's department determined the spot rates for moola were as follows: I December 1 MI=$0.69 December 15 MI=$0.62 * December 31 MI=$0.65 How should Americo report the M1,000,000 on its year-end balance sheet? "It's a lot of moola..." Americo is an import-export company domiciled in the United States. On December 31, the last day of its fiscal year, Americo entered into a transaction with Overseas Supply Company, located in Chaipan, a Pacific Rim country, to purchase 2,000 video cassette recorders (VCRs). The transaction was denominated in the foreign currency unit of Chai pan, the moola (M). The price established was M500 per VCR, for a total price of M1,000,000. The transaction will be completed in another day or two, and because Americo only had M700,000 on hand, it obtained the remaining M300,000 needed through the foreign exchange office of its local bank on December 31. The M700,000 Americo had on hand was the result of two recent events. On December 15, Americo entered into a transaction with another Chaipan company, Orient Traders, for the sale by Americo of 5,000 tons of grain for M100 per ton. The transaction was fully consummated on that date, with title to the grain (in a grain elevator at the port) passing to Orient Traders in exchange for the M500,000, which was delivered to Americo. The other M200,000 on hand was the result of an aborted transaction in which Americo was to have purchased portable radios from another company in Chaipan. Americo had acquired the moola through the foreign exchange office of its local bank on December 1 in anticipation of completing the deal that day. However, when the radios turned out to be of substandard quality, Americo rejected them and canceled the deal. Americo's controller's department determined the spot rates for moola were as follows: I December 1 MI=$0.69 December 15 MI=$0.62 * December 31 MI=$0.65 How should Americo report the M1,000,000 on its year-end balance sheet?