On November 1, 2013, the Penguin Corporation, a US corporation, sold a machine to Shearwater Corporation, a
Question:
On November 1, 2013, the Penguin Corporation, a US corporation, sold a machine to Shearwater Corporation, a UK company. The selling price was $9,400 and Shearwater agreed to pay in pounds on February 1, 20X4. Both corporations are on a calendar year accounting period. Assume that the spot rates for the British pound on
November 1, 2013: $1.60
December 31, 2013: $1.62
February 1, 2014: $1.58
Required:
1- Record the transactions in the General Journals of Penguin Corporation on the dates below:
General Journals Entries | Date |
1/11/2013 | |
31/12/2013 | |
1/02/2014 |
2- Record the transactions in the General Journals of Shearwater Corporation “seller” on the dates below:
General Journals Entries | Date |
1/11/2013 | |
31/12/2013 | |
1/02/2014 |
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach