Alimo Trading co. in Canada Imports Almonds from a seller in California, USA to be sold in retail in Canada. The seller allows this buyer to pay their invoices in 60 days. On 21st Aug. 201X, Alimo purchased $210,000 US worth of almonds (due on Oct. 20th). Invoices and payments are recorded based on the applicable exchange rates. Alimo produces its financial statements every month, on the last business day The exchange rates are as under: August 21, 201x August 31, 201X Sept. 30, 201X 1 USD = 1.189 CAD 1 USD = 1.177 CAD 1 USD = 1.173 CAD Oct. 20, 201X 1 USD = 1.179 CAD Please provide the necessary journal entries on transaction date, on reporting dates and on settlement date.

Alimo Trading co. in Canada Imports Almonds from a seller in California, USA to be sold in retail in Canada. The seller allows this buyer to pay their invoices in 60 days. On 21st Aug. 201X, Alimo purchased $210,000 US worth of almonds (due on Oct. 20th). Invoices and payments are recorded based on the applicable exchange rates. Alimo produces its financial statements every month, on the last business day The exchange rates are as under: August 21, 201x August 31, 201X Sept. 30, 201X 1 USD = 1.189 CAD 1 USD = 1.177 CAD 1 USD = 1.173 CAD Oct. 20, 201X 1 USD = 1.179 CAD Please provide the necessary journal entries on transaction date, on reporting dates and on settlement date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Question

Alimo Trading co. in Canada Imports Almonds from a seller in California, USA to be sold in retail
in Canada. The seller allows this buyer to pay their invoices in 60 days.
On 21st Aug. 201X, Alimo purchased $210,000 US worth of almonds (due on Oct. 20th). Invoices
and payments are recorded based on the applicable exchange rates. Alimo produces its
financial statements every month, on the last business day
The exchange rates are as under:
August 21, 201X
August 31, 201X
Sept. 30, 201X
1 USD = 1.189 CAD
1 USD = 1.177 CAD
1 USD = 1.173 CAD
Oct. 20, 201X
1 USD = 1.179 CAD
Please provide the necessary journal entries on transaction date, on reporting dates and on
settlement date.

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