Shelton Corporation is an international dealer in jewelry

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:

  1. Determine the amount at which the receivables and payables should be reported in Shelton’s December 31, 2017 balance sheet.

  1. Calculate gains and losses that should appear in Shelton’s 2017 and 2018 income statements.