On April 15, Fasta, Inc. purchased 88,500,000 yen Fasta of parts from a Tokyo company paying 20%
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Question:
On April 15, Fasta, Inc. purchased 88,500,000 yen Fasta of parts from a Tokyo company paying 20% down, and the balance is due in 90 days. Interest is payable at a rate of 8% on the unpaid balance. The exchange rate on July 15, was $1.00 = 118 Japanese yen. On November 13, the exchange rate was $1.00 = 114 Japanese yen.
Required:
Prepare journal entries to record the purchase and payment of this foreign currency transaction in U.S. dollars.
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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