Homestyle Brands imports materials from other coun‑ tries and exports finished products to customers throughout the world. Information regarding four such trans‑ actions occurring in the last accounting period, all denominated in units of foreign currency, is given below: Country Amount Spot rate at transaction date Spot rate at payment date 1. Import from Taiwan . . . . . . . 100,000 Taiwan dollars $0.033 $0.028 2. Import from Poland . . . . . . . 600,000 zloty 0.280 0.310 3. Export to Brazil. . . . . . . . . . . 400,000 reais 0.321 0.358 4. Export to Switzerland . . . . . . 950,000 Swiss francs 1.040 1.007 Required Prepare the journal entries made by Homestyle Brands to record the above events on the transaction date and on the payment date
Homestyle Brands imports materials from other coun‑ tries and exports finished products to customers throughout the world. Information regarding four such trans‑ actions occurring in the last accounting period, all denominated in units of foreign currency, is given below: Country Amount Spot rate at transaction date Spot rate at payment date 1. Import from Taiwan . . . . . . . 100,000 Taiwan dollars $0.033 $0.028 2. Import from Poland . . . . . . . 600,000 zloty 0.280 0.310 3. Export to Brazil. . . . . . . . . . . 400,000 reais 0.321 0.358 4. Export to Switzerland . . . . . . 950,000 Swiss francs 1.040 1.007 Required Prepare the journal entries made by Homestyle Brands to record the above events on the transaction date and on the payment date
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Recording Import and Export Transactions Homestyle Brands imports materials from other coun‑ | ||||||||||
| tries and exports finished products to customers throughout the world. Information regarding four such trans‑ | ||||||||||
| actions occurring in the last accounting period, all denominated in units of foreign currency, is given below: | ||||||||||
| Country Amount | ||||||||||
| Spot rate at | ||||||||||
| transaction date | ||||||||||
| Spot rate at | ||||||||||
| payment date | ||||||||||
| 1. Import from Taiwan . . . . . . . 100,000 Taiwan dollars $0.033 $0.028 | ||||||||||
| 2. Import from Poland . . . . . . . 600,000 zloty 0.280 0.310 | ||||||||||
| 3. Export to Brazil. . . . . . . . . . . 400,000 reais 0.321 0.358 | ||||||||||
| 4. Export to Switzerland . . . . . . 950,000 Swiss francs 1.040 1.007 | ||||||||||
| Required | ||||||||||
| Prepare the |
||||||||||
| and on the payment date |
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