I.A. Prepare all entries on the Phil. firm’s books to record the above transactionsB. Determine the following: Foreign exchange gain or loss on:i. December 1, 20x4ii. December 31, 20x4iii. March 1, 20x5On December 31, 20x4:i. Accounts payableii. Inventory Part 2REQUIRED: Translate (translation working paper) the financial statements of GoldCorporation into the presentation currency which is Philippine peso. Gold Corporation began its operation at the beginning of 2018. Its functional currency isthe US dollar and its presentation currency is the Philippine peso. Gold Corporation hadcash of $225,000 and common stock of $225,000 on January 1, 2018. At the beginningof February, Gold Corporation purchased land for $80,000 and building for $55,000 inexchange for a three-year note payable. Revenue for 2018 was $355,000. Operatingexpenses, including depreciation of $5,000, were $250,000. The statement of financialposition for Gold Corporation in US dollar at the end of 2018 is as follows:Gold CompanyBalance SheetDecember 31, 2018AssetsUSDollarsCash105,000170,000100,00050,000425.000Accounts receivableLandBuilding, netTotal assetsLiabilities and Shareholders' EquityAccounts payableLong-term debtShare capitalRetained earningsTotal liabilities and stockholders' equity10,000155,000225,00035.000425.000Additional land was purchased in March in exchange for a three-year note payable for$20,000. Dividends of $70,000 were declared and paid on October. The exchange ratesfor 2018 are as follows:Beginning of the yearP46.50FebruaryMarch46.2546.7545.75OctoberEnd of the yearWeighted average45.5046.00REQUIRED: Translate (translation working paper) the financial statements of GoldCorporation into the presentation currency which is Philippine peso. On November 1, 20x4 a Philippine firm ordered 1,200 units of inventory from a US firmfor $24,000. The inventory was shipped and invoiced to the Phil. firm on December 1,20x4, to be paid on March 1, 20x5. The firm's fiscal year-end is December 31. Assumefurther that the Phil. firm did not engage in any form of hedging activity. The spot ratesfor US dollars at various dates are as follows:Buying ratesSelling ratesP40.25Nov. 1, 20x4Dec. 1, 20x4Dec. 31, 20x4March 1, 20x5P39.8040.0040.7040.5540.8040.6040.65Required:1. Prepare all entries on the Phil. firm's books to record the above transactions2. Determine the following:a. Foreign exchange gain or loss on:i.December 1, 20x4ii.December 31, 20x4iii.March 1, 20x5b. On December 31, 20x4:i.Accounts payableii.Inventory

Journal entry refers to the reporting of the business transaction into the books of accounts of…

A. Prepare all entries on the Phil. firm’s books to record the above transactions B. Determine the following: Foreign exchange gain or loss on: i. December 1, 20x4 ii. December 31, 20x4 iii. March 1, 20x5 On December 31, 20x4: i. Accounts payable ii. Inventory

A. Prepare all entries on the Phil. firm’s books to record the above transactions B. Determine the following: Foreign exchange gain or loss on: i. December 1, 20x4 ii. December 31, 20x4 iii. March 1, 20x5 On December 31, 20x4: i. Accounts payable ii. Inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your business subsidiary in Brunei reports their financial information with their local currency (Brunei Dollar)(BND). The information is reported in Table 1. Translate the financial information of your Brunei subsidiary using the Current/Non-Current method, and Monetary / Non-Monetary Method. The Current/Spot Rate is BND 1 equal to MYR 3. The historical rate is BND 1 equal to MYR 3.5 Table 1 Financial Information from Subsidiary in Brunei Cash $2,500 Deposit in Bank $1,050 Inventory $5,000 Account Receivables $3,500 Building $51,000 Equipment $38,000 Intangible Assets $10,300 Account Payable $4,800 Short-term Bank Loans $15,000 Long Term Debt $56,000 Sales $70,000 COGS $78,321
State how each of the following accounts should be classified on the balance sheet. (a) Treasury Stock (b) Retained Earnings (c) Vacation Pay Payable (d) Foreign Currency Translation Adjustment (e) Allowance for Bad Debts (f) Liability for Pension Payments (g) Investment Securities (Trading) (h) Paid-In Capital in Excess of Stated Value (i) Leasehold Improvements (j) Goodwill (k) Receivables—U.S. Government Contracts (l) Advances to Salespersons (m) Premium on Bonds Payable (n) Inventory (o) Patents (p) Unclaimed Payroll Checks (q) Income Taxes Payable (r) Subscription Revenue Received in Advance (s) Interest Payable (t) Deferred Income Tax Asset (u) Tools (v) Deferred Income Tax Liability
Please help me
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s]): Cash NGN 15,120 Notes payable NGN 20,160 Inventory 10,800 Common stock 20,160 Land 4,080 Retained earnings 10,080 Building 40,800 Accumulated depreciation (20,400 ) NGN 50,400 NGN 50,400 The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place: 2020 Feb. 1 Paid 8,080,000 NGN on the note payable. May 1 Sold entire inventory for 16,800,000 NGN on account. June 1 Sold land for 6,080,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,080,000 NGN cash. Oct. 1 Bought inventory for 20,080,000 NGN cash. Nov. 1…
Rolfe Company (a U.S.-based company) has a subsidiary in Nigeria where the local currency unit is the naira (NGN). On December 31, 2019, the subsidiary had the following balance sheet (amounts are in thousands [000s): Cash Inventory Land Building Accumulated depreciation 2011 2013 August 1, 2019 December 31, 2019 February 1, 2020 May 1, 2020 June 1, 2020 August 1, 2020 September 1, 2020 NGN 16,790 Notes payable Common stock Retained. 11,900 earnings The subsidiary acquired the inventory on August 1, 2019, and the land and building in 2013. It issued the common stock in 2011. During 2020, the following transactions took place: October 1, 2020 November 1, 2020 December 1, 2020 December 31, 2020 Average for 2020 4,190 41,900 (20,950) NGN 53,830 2020 Feb. 1 Paid 8,190,000 NGN on the note payable. May 1 Sold entire inventory for 17,900,000 NGN on account. June 1 Sold land for 6,190,000 NGN cash. Aug. 1 Collected all accounts receivable. Sept. 1 Signed long-term note to receive 8,190,000 NGN…
Translation of financial statements Use the following information for the next three questions: Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M share capital, which were issued also on this date. Entity A's functional currency is the Philippine peso (P). However, it wishes to present its 20x1 financial statements into Chinese yuan (¥). The following information was gathered on December 31, 20x1, after a year of operations. Total assets PIOM Total liabilities P5M Share capital Retained earnings Total liabilities and equity 2M 3M P10M Income P7M Expenses (4M) Profit P3M Relevant exchange rates: January 1, 20x1 (historical rate for the share capital) P5¥1 Average rate December 31, 20x1 (closing rate) P8:¥1 P10:¥1 How much is the translated equity?
2
ASSUME THAT THE U.S. DOLLAR IS THE FUNCTIONAL CURRENCY. Ruthie Inc. had a debit adjustment of $7900 for the year ended December 31, 2019, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars. Additionally, Ruthie had a receivable from a foreign customer. It is denominated in the customer's local currency. On December 31, 2018, this receivable for 300,000 local currency units (LCU) was correctly included in Ruthie's balance sheet at $124200. When the receivable was collected on February 15, 2019, the U.S. dollar-equivalent was $122200. In Ruthie's 2019 consolidated statement of income, how much should be reported as foreign exchange gain/(loss) in computing net income? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE NUMBER IS NEGATIVE, TYPE -1000 INSTEAD OF ($1,000) Your Answer:
Journal entries in 20x1 and 20x2
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
Choose the best answer
18 - In the form of payment with acceptance credit, which is the journal entry to be made if the policies sent by the exporter are accepted by the importer?A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 601 01 FOREIGN GOODS SALES XX B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 601 01 FOREIGN GOODS SALES XX C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 120 02 FOREIGN BUYER XX 121 02 RECEIVABLES-FC XX D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 121 02 RECEIVABLES-FC XX 120 02 FOREIGN BUYER XXE) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 102 02 BANK X DTH XX 121 02 RECEIVABLES-FC XX