Part I Maple Company had the following export and import transactions during 20X5: 1. On March...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Part I Maple Company had the following export and import transactions during 20X5: 1. On March 1, Maple sold goods to a Canadian company for C$30,000, receivable on May 30. The spot rates for Canadian dollars were C$1 $0.65 on March 1 and C$1 = $0.68 on May 30. 2. On July 1, Maple signed a contract to purchase equipment from a Japanese company for 500,000. The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with payment due in 60 days on October 29. The spot rates for yen were 1 = $0.102 on July 1, 1 = $0.104 on August 30, and 1 = $0.106 on October 29. The 60-day forward exchange rate on August 30, 20X5, was 1 = $0.1055. 3. On November 16, Maple purchased inventory from a London company for 10,000, payable on January 15, 20X6. The spot rates for pounds were 1 = $1.65 on November 16, 1 = $1.63 on December 31, and 1 = $1.64 on January 15, 20X6. The forward rate on December 31, 20X5, for a January 15, 20X6, exchange was 1 = $1.645. Required: Prepare journal entries to record Maple's import and export transactions during 20X5 and 20X6. a-1 a-2 a-3 b. What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X5? Complete this question by entering your answers in the tabs below. Req 1 A1 Req 1 A2 Req 1 A3 Req 1 B Prepare journal entries to record Maple's import and export transactions during 20X5 and 20X6. Note: If no entry is required for a particular transaction, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet Dobit 16,500 Credit 16,500 200 200 Record the purchase of inventory. Record the revaluation of the foreign currency. Record the revaluation of the foreign currency. Record the receipt of the foreign currency. 5 Record the payment of accounts payable. 16,400 16,400 Part I Maple Company had the following export and import transactions during 20X5: 1. On March 1, Maple sold goods to a Canadian company for C$30,000, receivable on May 30. The spot rates for Canadian dollars were C$1 $0.65 on March 1 and C$1 = $0.68 on May 30. 2. On July 1, Maple signed a contract to purchase equipment from a Japanese company for 500,000. The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with payment due in 60 days on October 29. The spot rates for yen were 1 = $0.102 on July 1, 1 = $0.104 on August 30, and 1 = $0.106 on October 29. The 60-day forward exchange rate on August 30, 20X5, was 1 = $0.1055. 3. On November 16, Maple purchased inventory from a London company for 10,000, payable on January 15, 20X6. The spot rates for pounds were 1 = $1.65 on November 16, 1 = $1.63 on December 31, and 1 = $1.64 on January 15, 20X6. The forward rate on December 31, 20X5, for a January 15, 20X6, exchange was 1 = $1.645. Required: Prepare journal entries to record Maple's import and export transactions during 20X5 and 20X6. a-1 a-2 a-3 b. What amount of foreign currency transaction gain or loss would Maple report on its income statement for 20X5? Complete this question by entering your answers in the tabs below. Req 1 A1 Req 1 A2 Req 1 A3 Req 1 B Prepare journal entries to record Maple's import and export transactions during 20X5 and 20X6. Note: If no entry is required for a particular transaction, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet Dobit 16,500 Credit 16,500 200 200 Record the purchase of inventory. Record the revaluation of the foreign currency. Record the revaluation of the foreign currency. Record the receipt of the foreign currency. 5 Record the payment of accounts payable. 16,400 16,400
Expert Answer:
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
A report from a poultry industry news Web site stated that the weights of broilers (commercially raised chickens) are approximately normally distributed with mean 1395 grams and standard deviation...
-
Part I Maple Company had the following export and import transactions during 20X5: 1. On March 1, Maple sold goods to a Canadian company for C$30,000, receivable on May 30. The spot rates for marks...
-
Consider the following information: Rate of Return if State Occurs State of Economy Boom :57 Bust of Economy .66 .34 Probability of State Stock A .09 .13 Stock B Stock C .03 .19 .24 -.04 a. What is...
-
In 2022, Tornado Ltd. had average inventory of $92000. The 2022 income statement showed net sales of $2100000 and gross profit of $428000. In 2021, it was taking the company approximately 30 days to...
-
You are the chief audit executive for the internal auditing function of a large municipal hospital. You receive monthly financial reports prepared by the accounting department, and your review of...
-
What are the benefits and downsides of global competition?
-
The financial statements of J. Foot Ltd are made up to 31 March in each year. Work on Contract 349 started on 1 July 2006 and completed on 31 January 2008. The total contract price was 580,000, but a...
-
Accountants for Johnson, Inc., have assembled the following data for the year ended December 31, 2012: Requirement 1. Prepare Johnsons statement of cash flows using the indirect method. Include an...
-
Question 1: question 2: . Oriole Bucket Co., a manufacturer of rain barrels, had the following data for 2022. Sales 2,690 units Sales price $55 per unit Variable costs $33 per unit Fixed costs...
-
An oil refining company is holding 1,000 one-month long crude oil futures contracts on NYMEX at a futures price of $43 per barrel. At contract expiration, the company transfers half of its position...
-
Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $35,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April...
-
This year, FCF Inc. has earnings before interest and taxes of $9,050,000, depreciation expenses of $800,000, capital expenditures of $1,100,000, and has increased its net working capital by $500,000....
-
A systematic process for analyzing the purchase of products and services to reduce costs, reduce risks, and improve supplier performance is called _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . effective...
-
(1) The pros and cons of stare decisis on our society, (2) Whether you believe that the doctrine is sufficiently defined. (3) How you felt about the views and opinions expressed in the videos? ...
-
7. Terrier Nation Inc. expects to pay a dividend of $8 at the end of Year 4 (they do not expect to pay dividends in years 1, 2 and 3). After year 4, dividends are expected to grow at 7% for the...
-
Hiroki and Riley start a new Japanese mochi company offering innovative mochi flavors in bite-sized frozen treats. The mochi can be purchased in the frozen foods section of grocery stores in the...
-
Write a paper detailing a geographic information system (GIS) of your own design that would utilize data in an original manner.
-
Explain the six-legged stool of the financial reporting process.
-
What are the three M's of financial reporting fraud?
-
How did Sunbeam create revenues?
Study smarter with the SolutionInn App