Striking Furs imports furs from Cananda. Prepare journal entries to record the following events. Dec. 11, 2014:
Question:
Striking Furs imports furs from Cananda. Prepare journal entries to record the following events.
Dec. 11, 2014: Purchased furs from Capable Trappers, Ltd., a Candadian corporation, at a price of $25,000 Candadian dolars, due in 60 days. The current exchange rate is $0.85 U.S. dollars per Candadian dollar. (Striking uses the perpetual inventory method; debit the Inventory account.)
Dec. 31, 2014: Striking made a year-end adjusting entry relating to the account payable to Capable Trappers. The exchange rate at year-end is $0.89 U.S. dollars per Candadian dollar.
Feb. 9, 2015: Issued a check for $21,750 (U.S. dollars) to National Bank in full settlement of the liability to Capable Trappers, Ltd. The exchange rate at this date is $0.87 U.S. dollars per Candadian dollar.
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta