$($AICPA adapted$)$

EXERCISE $11-6$

Transaction Gain or Loss $LO{4}_{?}$

Agentel Corporation is a U$.$S$.-$based importing$-$exporting company. The company entered into the following transactions during the month of November.

Nov. $6$ Purchased merchandise from AGT, a Swiss firm, for $600,000$ francs.

$5$ Sold merchandise to SLS$,$ Inc., a firm located in Rio De Janeiro, Brazil, for $$200,000.$

$18$ Sold merchandise to TNT$,$ Ltd$.,$ a British firm, for $130,000$ pounds.

$20$ Purchased merchandise from SDS$,$ Ltd$.,$ a British firm, for $$160,000.$

All the transactions were unsettled at December $31,$ Agentel's fiscal year$-$end. Spot rates are as follows:

$\backslash$table$[[,,$Currency$],[$Date$,$Szeiss Franc,Real,Pound,$],[$November $6,$$$1\mathrm{.}049,$$$\mathrm{.}412,$$$1\mathrm{.}520,],[$November $15,1\mathrm{.}0487,\mathrm{.}409,1\mathrm{.}509,],[$November $18,1\mathrm{.}0476,\mathrm{.}414,1\mathrm{.}506,],[$November $20,1\mathrm{.}0468,\mathrm{.}405,1\mathrm{.}498,],[$December $31,1\mathrm{.}046,\mathrm{.}398,1\mathrm{.}482,]]$

Required:

A$.$ Compute the amount that Agentel would report for each unsettled receivable and payable in its balance sheet prepared at December $31.$

B$.$ Compute the transaction gain or loss on each unsettled receivable and payable that would be reported in the income statement prepared for the year ended December $31.$