A company has an account payable to a U.S. company, a supplier of inventory, in the amount of US$250,000. The payable wasincurred when the exchange rate was US$1 = Cdn$0.82. At year-end, the rate is $0.79.Required:1. What amount of inventory is recorded?Amount of inventory2. What amount of exchange gain or loss will the company report for the year?Amount of exchange gain or los

Foreign Currency Transactions: A business doing international transaction enters into the foreign…

A company has an account payable to a U.S. company, a supplier of inventory, in the amourit df incurred when the exchange rate was US$1= Cdn$0.82. At year-end, the rate is $0.79. Required: L What amount of inventory is recorded? Amount of inventory 2. What amount of exchange gain or loss will the company report for the year? Amount of exchange gain or loss

A company has an account payable to a U.S. company, a supplier of inventory, in the amourit df incurred when the exchange rate was US$1= Cdn$0.82. At year-end, the rate is $0.79. Required: L What amount of inventory is recorded? Amount of inventory 2. What amount of exchange gain or loss will the company report for the year? Amount of exchange gain or loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company has an account payable to a U.S. company, a supplier of inventory, in the amount of US$250,000. The payable was
incurred when the exchange rate was US$1 = Cdn$0.82. At year-end, the rate is $0.79.
Required:
1. What amount of inventory is recorded?
Amount of inventory
2. What amount of exchange gain or loss will the company report for the year?
Amount of exchange gain or los

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