CASE 1. The Philippine corporation purchased merchandise from a US firm for USD$15,000 on November 1, 2021. Also on the same date the Philippine corporation sold merchandise to a US firm for USD$30,000. The following rates were available: Buying Rate Selling Rate November 1, 2021 US$1 = P46.00 P1 = $.021505 December 31, 2021 US$1 = P45.80 P1 = $.021277 January 31, 2022 US$1 = P46.20 P1 = $.022222 What is the amount of sales revenue recognized for the year end 2021?1,380,000 1,395,000 1,374,000 1,410,000 2. What is the carrying amount of the accounts receivable on December 31, 2021? 1,410,000 1,374,000 1,386,000 1,350,000 3. What is the carrying amount of the accounts payable on December 31, 2021? 687,000 705,000 693,000 675,000 4. What is the total/net foreign currency gain/(loss) for the year 2021? 12,000 gain 12,000 loss 13,500 gain 13,500 loss
CASE 1. The Philippine corporation purchased merchandise from a US firm for USD$15,000 on November 1, 2021. Also on the same date the Philippine corporation sold merchandise to a US firm for USD$30,000. The following rates were available: Buying Rate Selling Rate November 1, 2021 US$1 = P46.00 P1 = $.021505 December 31, 2021 US$1 = P45.80 P1 = $.021277 January 31, 2022 US$1 = P46.20 P1 = $.022222 What is the amount of sales revenue recognized for the year end 2021?1,380,000 1,395,000 1,374,000 1,410,000 2. What is the carrying amount of the accounts receivable on December 31, 2021? 1,410,000 1,374,000 1,386,000 1,350,000 3. What is the carrying amount of the accounts payable on December 31, 2021? 687,000 705,000 693,000 675,000 4. What is the total/net foreign currency gain/(loss) for the year 2021? 12,000 gain 12,000 loss 13,500 gain 13,500 loss
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CASE 1. The Philippine corporation purchased merchandise from a US firm for USD$15,000 on November 1, 2021. Also on the same date the Philippine corporation sold merchandise to a US firm for USD$30,000.
The following rates were available:
|
|
Buying Rate |
Selling Rate |
|
November 1, 2021 |
US$1 = P46.00 |
P1 = $.021505 |
|
December 31, 2021 |
US$1 = P45.80 |
P1 = $.021277 |
|
January 31, 2022 |
US$1 = P46.20 |
P1 = $.022222 |
- What is the amount of sales revenue recognized for the year end 2021?1,380,000
1,395,000
1,374,000
1,410,000
2. What is the carrying amount of the
1,410,000
1,374,000
1,386,000
1,350,000
3. What is the carrying amount of the accounts payable on December 31, 2021?
687,000
705,000
693,000
675,000
4. What is the total/net foreign currency gain/(loss) for the year 2021?
12,000 gain
12,000 loss
13,500 gain
13,500 loss
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