Question
On July 1, 2015, X Co. purchased inventory from its main foreign supplier, Big Bird Systems, at a cost of FC 12,000. X Co's year
On July 1, 2015, X Co. purchased inventory from its main foreign supplier, Big Bird Systems, at a cost of FC 12,000. X Co's year end is on July 31. Payment of FC 12,000 for the inventory is due on August 31, 2015. Some important dates regarding this transaction, as well as the exchange rates in effect at each of these dates are shown below:
Transaction date: July 1, 2015: | 1 FC. = CDN$1.370 |
Year end: July 31, 2015: | 1 FC. = CDN$1.345 |
Settlement date: August 31, 2015: | 1 FC. = CDN$1.325 |
What would be the amount of the foreign exchange gain or loss recorded for the year end, July 31, 2015?
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
