Global Motors is a U.S. corporation that purchases automobiles from European manufacturers for distribution in the United States. A recent purchase involved the following events: Nov.12 Purchased automobiles from Stockholm Motors in Swedish kronor for Sk20,000,000, payable in 60 days. Current exchange rate, $0.1286 per krona. (Global uses the perpetual inventory system.) Dec.31 Made year-end adjusting entry relating to the Sk20,000,000 account payable to Stockho lm Motors. Current exchange rate, $0.1288 per krona. Jan.11 Issued a check to World Bank for $2,566,800 in full payment of the account payable to Stockholm Motors. Required: a. Prepare in general journal form the entries necessary to record the preceding events.
Global Motors is a U.S. corporation that purchases automobiles from European manufacturers for distribution in the United States. A recent purchase involved the following events: Nov.12 Purchased automobiles from Stockholm Motors in Swedish kronor for Sk20,000,000, payable in 60 days. Current exchange rate, $0.1286 per krona. (Global uses the perpetual inventory system.) Dec.31 Made year-end adjusting entry relating to the Sk20,000,000 account payable to Stockho lm Motors. Current exchange rate, $0.1288 per krona. Jan.11 Issued a check to World Bank for $2,566,800 in full payment of the account payable to Stockholm Motors. Required: a. Prepare in general journal form the entries necessary to record the preceding events.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Global Motors is a U.S. corporation that purchases automobiles from European manufacturers for distribution in the United States. A
recent purchase involved the following events:
Nov.12 Purchased automobiles from Stockholm Motors in Swedish kronor for Sk20,000,000, payable in 60 days. Current
exchange rate, $0.1286 per krona. (Global uses the perpetual inventory system.)
Dec.31 Made year-end adjusting entry relating to the Sk20,000,000 account payable to Stockho lm Motors. Current exchange
rate, $0.1288 per krona.
Jan.11 Issued a check to World Bank for $2,566,800 in full payment of the account payable to Stockholm Motors.
Required:
a. Prepare in general journal form the entries necessary to record the preceding events.
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