ara Corporation issued a promissory note denominated in foreign currency for the purchase made from a supplier in England on December 1, for a 60-day, 12% promissory note for 100,000 pounds, at a selling rate of 1FC to P65.50. On December 31, the selling spot rate is 1FC to P64.80. On January 30, the selling spot rate is 1FC to P65.45 On the settlement date, how much is the foreign exchange loss?
ara Corporation issued a promissory note denominated in foreign currency for the purchase made from a supplier in England on December 1, for a 60-day, 12% promissory note for 100,000 pounds, at a selling rate of 1FC to P65.50. On December 31, the selling spot rate is 1FC to P64.80. On January 30, the selling spot rate is 1FC to P65.45 On the settlement date, how much is the foreign exchange loss?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tara Corporation issued a promissory note denominated in foreign currency for the purchase made from a supplier
in England on December 1, for a 60-day, 12% promissory note for 100,000 pounds, at a selling rate of 1FC to P65.50. On
December 31, the selling spot rate is 1FC to P64.80. On January 30, the selling spot rate is 1FC to P65.45
On the settlement date, how much is the foreign exchange loss?
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