Shelton Corporation is an international dealer in jewelry and engages in numerous import and export activities. Sheltons
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Question:
Shelton Corporation is an international dealer in jewelry and engages in numerous import and export activities. Shelton’s receivables and payables in foreign currency units before year end adjustments on December 31, 2017 are summarized as follows:
Foreign Currency Rate on Date Current RateRate at Settlement
Currency Units of Transaction on 12/31/17 in 2018
Accounts Receivable
British Pds 100,000 1.5300 $1.6600 $ 1.595
Euros 90,000 .8600 .8400 .790
Krona 120,000 .6600 .6400 .685
Yen 3,200,000 .0066 .0076 .0078
Accounts Payable
Canadian $ 150,000 .7700 .6900 .723
Pesos 220,000 .1520 .1350 .138
Yen 4,500,000 .0071 .0076 .0080
REQUIRED:
- Determine the amount at which the receivables and payables should be reported in Shelton’s December 31, 2017 balance sheet.
- Calculate gains and losses that should appear in Shelton’s 2017 and 2018 income statements.
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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