Nour company (a U.S. company) began operations on December 1, 2020, when Nour Invested $150,000 of her cash savings in the business. In the first month of operations, Nour had the following transactions:

December 3, 2020 Bought inventory for 100,000 foreign currency units (FCU) on account. Must be paid with foreign currency units.

December 8, 2020 Sold 60% of inventory acquired on 1/12/20 for 32,000 British pounds on account. Invoice denominated in British pounds

December 10, 2020 Paid $3,000 in other operating expenses

December 23, 2020 Acquired and paid half of the foreign currency units. owed to the foreign supplier

December 28, 2020 Collected half of the 32,000 pounds from the customer in Great Britain and immediately converted them into U.S. dollars

The following exchange rates apply:

Date                                       Rate                                     Rate

December 3               $.6260 = 1 FCU               $1.5950 = 1 pound

December 8               $.6230 = 1 FCU               $1.5760 = 1 pound

December 10             $.6210 = 1 FCU               $1.5880 = 1 pound

December 23             $.6250 = 1 FCU               $1.5610 = 1 pound

December 28             $.6330 = 1 FCU               $1.5570 = 1 pound

December 31             $.6180 = 1 FCU               $1.5720 = 1 pound

Required:

1. Prepare the required journal entries (Including the adjusting entries) at Nour company to record the previous transactions.

2. Assuming there were no other transactions, Calculate the net income for the month ended December 31, 2020 and Calculate the amounts that should appear in the balance sheet of Nour company on December 31, 2020, for the following items:

a.            Cash.

b.            Accounts Receivable.

c.             Inventory.

d.            Accounts Payable.    

Answer rating: 100% (QA)

Please refer datewsie exchange rate given in questions to convert Foreign currency into 2 from above journal balance we will prepare income statement ... View the full answer