MATERIAL 14: FOREIGN CURRENCY TRANSACTIONS WITH AND WITHOUT HEDGING TRANSACTIONS FOREIGN CURRENCY WITHOUT HEDGING I - Importing Transactions On December 31, 2009, Petra Corporation, ordered equipment FOB shipping point from an American Company for US $ 10, 000. The equipment was shipped and invoiced to Petra on December 16, 2009. Petra paid the invoice on January 15, 2010. Relevant spot rates for US dollars on the respective dates are as follows Buying Spot Rate Selling Spot Rate 1-Dec - 09 48.50 P 49.00 16 -Dec -09 P 48.90 P 50.00 31 -Dec - 09 P 49.50 P 51.00 15 -Jan -10 P 50.00 P 50.50 Required 1. Prepare all the entries on Petra Corporation's books to record the above transactions Determine the following a. Foreign Exchange gain or loss on : a.1 December 16 , 2009 8.2 December 31 , 2009 January 15, 2010 On December 31 , 2009 : b.1 Accounts payable h 2 Equipment II - Exporting Transactions Conrada Exports Corporation , sold merchandise - metal crafts to a Canadian Corporation for a 10 000 Canadian dollars. Pertinent information on the exchange conversion rates related to this transaction were as follows : Buying Spot Rate Selling Spot Rate 11 /16 /2009 - receipt of order P 51.50 P 52.00 12 /16 /2009 - date of shipment P 52.50 P 53.00 12 /31 /2009 - balance sheet date P 53.50 P 53.75 01 /15 /2010 - date of collection P 53.00 P 54.00 Required 1. Prepare all the entries on Conrada Corporation's books to record the above transactions 2. Determine the following a. Foreign Exchange gain or loss on : a.1 December 16 , 2009 a.2 December 31, 2009 a.3 January 15 , 2010 On December 31 , 2009 : Accounts receivable h 2 Sales Ill - Import Ashar, a Philippine Corporation, bought inventory items from a foreign supplier in US on November 5, 2009 for US $ 100 , 000 , when the spot rate was P41.00 . At Ashar's December 31 , 2009