On June 30, 2005, Impo Company, which prepares monthly financial statements, acquired from Japanese Company for 500,000 yen () a machine with an economic life of five years and no residual value. To pay Japanese Company, Impo borrowed 500,000 from Japanese Bank on a 12%, 60-day promissory note. Impo acquired a 510,000 draft from U.S. Bank on August 29, 2005, to pay the maturity value of the note to Japanese Bank. Relevant spot rates for the yen were as follows:

Instructions

Prepare journal entries (omit explanations) for Impo Company on June 30, July 31, and August 29, 2005, including interest accrual and depreciation of the machine. Use 30-day months for July and August interest.

Answer rating: 100% (QA)

June 30 2005 Machine 500000 Notes Payable 500000 Ju... View the full answer