Question

Weyburn Corp., a Canadian company, sells its products to customers in the United Kingdom at prices quoted in pounds sterling. On November 14, 20X1, Weyburn sold and shipped goods that had cost $ 65,000 to produce to an English company for £ 100,000. On December 20, Weyburn received an international draft for part of the amount due, £ 40,000. At year-end (December 31), the remaining £ 60,000 was unpaid.
On February 12, 20X2, Weyburn received payment of the remaining £ 60,000.

Required
In general journal form, prepare journal entries to record the above events, and any adjustments necessary at year-end. Exchange rates (Canadian-dollar equivalent to £ 1) are as follows:
November 14........................... $ 1.51
December 20........................... $ 1.56 December 31........................... $ 1.58
February 12............................. $ 1.55



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  • CreatedMarch 13, 2015
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