Heritage, Ltd., is a U.S. company doing business in 20 countries. Local exchange rates for U.S. $1

Question:

Heritage, Ltd., is a U.S. company doing business in 20 countries. Local exchange rates for U.S. $1 at year-end before the introduction of the Euro were

The company's records indicate the following transactions for the year:
1. Purchased inventory from Roma Fine Skins in exchange for a note payable of 72,000,000. The exchange rate at that time was if 1,250 to $1.
2. While the exchange rate was peseta 100 to $1, sold raw materials to Lopez Trading Company in exchange for a PTA 270,000 note receivable.
3. While the exchange rate was £.5 to $1, sold equipment to U.K. Copies, Ltd., in exchange for an account receivable of £360,000.
4. Purchased from Containers Ltd. (Australia) spare bottles for $A 149,500 (Australian). The exchange rate, when the accounts payable was incurred, was $A1.25 (Australian) to $1.
Required:
a. What is the U.S. dollar equivalent for the above transactions?
b. Record the transactions in journal entries.
c. If these payables and receivables are outstanding at year-end, would there be an exchange gain or loss for each of the above transactions?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...