During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into
Question:
During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions:
Required:
A. Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic inventory system.
B. Prepare journal entries necessary to adjust the accounts as of December 31. Assume that on December 31 the direct exchange rates were as follows:
C. Prepare journal entries to record settlement of both open accounts on January 10. Assume that the direct exchange rates on the settlement dates were as follows:
D. Prepare journal entries to record the December 10 transaction, adjust the accounts on December 31, and record settlement of the account on January 10, assuming that the transaction was denominated in dollars rather than pesos. Assume the same exchange rates as those given.
Step by Step Answer: