No profit is recognized related to inventory
Q: Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated…
A: Inventory in pesos=Inventory bought×100-% sold=112,000×100-80%=22,400
Q: On November 20, 20X5, Diamond Corporation, a calendar-year US corporation, had merchandise delivered…
A: A Foreign Exchange transaction means a sale and purchase transaction is done between two parties in…
Q: Voltac Corporation (a US-based company) has the following import/export transactions denominated in…
A: The prices at which you may convert one currency for another are known as foreign exchange rates.…
Q: Max Ltd sells equipment to Star Ltd, a U.S. company on 30/01/2020 for US$250,000. Goods are invoiced…
A: In this scenario, we will explore the accounting transactions of Max Ltd, a company with its…
Q: On November 30, P Corporation purchased inventory from a Chinese supplier. The Chinese company…
A: Accounts payable is an obligation which is to paid off by the entity to its creditors or suppliers…
Q: Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated…
A: Solution: - Notes: - the following notes need to understand before start of calculations as follows…
Q: On November 20, 20X5, Diamond Corporation, a calendar-year US corporation, had merchandise delivered…
A: Solution Explanation- Dec 13 20x5 1- Unrealised gain on payable = Initial value - Closing value. =…
Q: Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated…
A: The exchange rate arises when a transaction takes place between two countries. It is the value of…
Q: The White Co. has the Philippine pesos as its functional currency. On October 16, 2020, White…
A: Foreign currencies are those currencies other than functional currencies. Presentation of Foreign…
Q: Selco, a U.S. Company, imports and exports tools, shop equipment, and industrial construction…
A: Solution:- Preparation of journal entries in the books of Selco as follows under:-
Q: Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated…
A: A. Inventory = 110,000 pesos × 0.19 × 40%(as 60% is sold) = $8360
Q: Jackson, a U.S. company, acquires a variety of raw materials from foreign vendors with amounts…
A:
Q: For what amount should Clark's Accounts Payable be credited on May 8?
A: International trade: When a company purchase raw materials (import) or sells finished goods (export)…
Q: Local Corp imported a heavy machine from the US for US$50,000 on October 10, 2019. A letter of…
A: Foreign exchange- Foreign exchange is the conversion of one currency into another at a specific rate…
Q: Doering Company, a U.S. corporation with customers in several foreign countries, had the following…
A:
Q: Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: IJR Corp. imports cheese for distribution in the United States (US). On April 1, the corporation…
A: A liability is recorded in the books as soon as it occurs. It's recorded using the exchange rate of…
Q: On December 15, 2020, Lisbeth Inc. (a U.S.-based company) purchases merchandise inventory from a…
A: Date Particulars Debit Credit 15/dec/20 inventory (50000 × $0.28) $14000 Accounts payable…
Q: A U.S. company sells a product to a British company with the transaction listed in British pounds.…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Matthias Corp. had the following foreign currency transactions during 2020: Purchased…
A: Gain on payment of merchandise purchased = Amount paid on April 20 - Value on January 20 = 51,400…
Q: Voltac Corporation (a U.S.-based company) has the following import/export transactions de Bought…
A: Transactions are to be recorded in books of accounts on the spot rate existing on the date of…
Q: Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated…
A: The balance sheet is created at the end of the fiscal year. The balance sheet shows the final…
Q: ASSUME THAI THE U.S. DOLLAR IS THE FUNCTIONAL CURRENCY. Ruthie Inc. had a debit adjustment of $7900…
A: Net Income: Net Income is the income that is earned during a particular period of time after meeting…
Q: Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local…
A: Foreign exchange gain = U.S. dollar equivalent on February 15, 2021 - U.S. dollar equivalent on…
Q: On November 6, 20X7, Zebra Corporation purchased merchandise from an unaffiliated foreign company…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: Harris Incorporated had the following transactions: On May 1, Harris purchased parts from a…
A: Solution:- In the given question, assume that the two transactions are denominated in U.S. dollars.…
Q: ASSUME THAT THE LOCAL CURRENCY UNIT IS THE FUNCTIONAL CURRENCY. Cade Inc. had a debit adjustment of…
A: Net Income is the income that is earned during a particular period of time after meeting all the…
Q: On December 15, 2017, Lisbeth Inc. (a U.S. company) purchases merchandise inventory from a foreign…
A: Prepare all journal entries for company L.
Q: On March 1, 2019, a U.S. company made a credit sale requiring payment in 30 days from a Malaysian…
A:
Q: A UK importer contracts to pay 18 million Yen for raw material from a supplier in Japan on one…
A: We have to find the total cost of the import in domestic currency. Spot rate and forward rate quotes…
Q: On October 1, 2024, Richmond Company sold inventory to a customer in a foreign country, denominated…
A: To record the sales transaction:February 1, 2025Accounts Receivable $86,000Sales Revenue $86,000To…
Q: Almira, Inc. is a U.S.-based manufacturer and wholesaler. On 10/15/20x1, Almira made its first…
A: Foreign exchange risk is the possibility of financial loss as a result of fluctuating exchange…
Q: Voltac Corporation (a U.S.-based company) March 1 May 1 Bought inventory costi Sold 60 percent of…
A: Transaction to be recorded in books of accounts on spot rate existing on the date of transaction and…
Q: A U.S. firm exports products to a German firm and will receive payment of €200,000 in three months.…
A: Forward contract is a derivative contract. It is about trading an asset at a particular date at a…
Q: FinnCo purchases goods from its Mexican supplier on 1 November 20X1; the purchaseprice is 100,000…
A: Step 1 The difference due to foreign exchange will be recognized on profit and loss account as a…
Q: Carl Inc. purchased inventory on September 12, 2017 from a foreign customer for 750,000 units of…
A: Forward contract has been entered to buy 750000 units of foreign currency for delivery on january…
Q: How does the fluctuation in the U.S. dollar per crown exchange rate affect Bento’s 2020 income…
A: a. Here we need to find how does the fluctuation in exchange rates affect Turbo's 2020 income…
A company located in the USA, which has the dollar as its functional currency, purchased inventory on February 1 in Vietnam for 10,000,000 dongs with a payment date of April 1. One dong can be exchanged for $0.01 on February 1, and one dong can be exchanged for $0.12 on April 1. On April 1, the company pays off the 10,000,000-dong debt from the purchase of inventory. When the US company presents its financial statements, which of the following statements is false?
- The business should file with the statement a gross profit of $110,000.
- No profit is recognized related to inventory
- A loss of $20,000 is reported as a result of accounts payable
- Cost of goods sold is reported at $120,000
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Matthias Corp. had the following foreign currency transactions during 2020: Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $63,200 and paid the invoice on April 20 at the U.S. dollar equivalent of $51,400. On September 1, borrowed the U.S. dollar equivalent of $304,000 evidenced by a note that is payable in the lender's local currency in one year. On December 31, the U.S. dollar equivalent of the principal amount was $326,000. In Matthias’s 2020 income statement, what amount should be included as a net foreign exchange gain or loss? Multiple Choice $10,200 loss $22,000 gain $33,800 loss $11,800 gainMax Ltd sells equipment to Star Ltd, a U.S. company on 30/01/2020 for US$250,000. Goods are invoiced in US dollars. Payment is made on 5/03/2020. The company also buys parts from the USA, also invoiced in US$, value US$187,500 on 20/4/2020. The functional currency of Max Ltd is AUD$. As at 30/06/2020, this debt unpaid. Rates: 30/01 – A$1 = US$0.93 5/03 – A$1 = US$0.92 20/4 – A$1 = US$0.94 30/6 – A$1 = US$0.91 Required: SHOW YOUR WORKINGS Prepare journal entries for the above transactions. (Round answers to the nearest dollar, e.g. $200,263.57 = $200,264).Voltac Corporation (a US-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 May 1 August 1 September 1 Bought inventory costing 124,000 pesos on credit. Sold 80 percent of the inventory for 104,000 pesos on credit. Collected 82,000 pesos from customers. Peid 72,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date March 1 May 1 August 1 September 1 December 31 U.B. Dollar рег Реко $ 0.22 0.23 0.24 0.25 0.26 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? Inventory b Cost of goods sold c Sales d Accounts receivable e Accounts payable Cash
- Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2024: March 1 May 1 August 1 September 1 Bought inventory costing 100,000 pesos on credit. Sold 60 percent of the inventory for 80,000 pesos on credit. Collected 70,000 pesos from customers. Paid 60,000 pesos to suppliers. Currency exchange rates for 1 peso for 2024 are as follows: Date March 1 May 1 August 1 September 1 December 31 U.S. Dollar per Peso $ 0.10 0.12 0.13 0.14 0.15 Assume that all receipts were converted into dollars as soon as they were received. Required: For each of the following accounts, what amount will Voltac report on its 2024 financial statements? a. Inventory b. Cost of goods sold c. Sales d. Accounts receivable e. Accounts payable f. CashHareshASSUME THAT THE U.S. DOLLAR IS THE FUNCTIONAL CURRENCY. Ruthie Inc. had a debit adjustment of $7900 for the year ended December 31, 2019, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars. Additionally, Ruthie had a receivable from a foreign customer. It is denominated in the customer's local currency. On December 31, 2018, this receivable for 300,000 local currency units (LCU) was correctly included in Ruthie's balance sheet at $124200. When the receivable was collected on February 15, 2019, the U.S. dollar-equivalent was $122200. In Ruthie's 2019 consolidated statement of income, how much should be reported as foreign exchange gain/(loss) in computing net income? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE NUMBER IS NEGATIVE, TYPE -1000 INSTEAD OF ($1,000) Your Answer:
- The White Co. has the Philippine pesos as its functional currency. On October 16, 2020, 3. White ordered some inventory from a foreign supplier and agreed a purchase price of 160,000 local currency units (LCU). The inventory was received on November 15, 2020. At December 31, 2020, the inventory remained on hand and the trade payable balance for the inventory purchase remained outstanding. The supplier was paid on January 27, 2021 and the inventory was sold on January 31, 2010. The following information about exchange rates is available: October 16, 2020 1.00 = 2.60 LCU November 15, 2020 December 31, 2020 1.00 = 2.50 LCU 1.00 = 2.40 LCU January 27, 2021 1.00 = 2.25 LCU According to IAS 21, The Effects of Changes in Foreign Exchange Rates, at what amount should the trade payable balance due to the supplier be presented in the statement of financial position at December 31, 2020?Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 112,000 pesos on credit. May 1 Sold 80 percent of the inventory for 92,000 pesos on credit. August 1 Collected 76,000 pesos from customers. September 1 Paid 66,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.21 May 1 0.22 August 1 0.23 September 1 0.24 December 31 0.25 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? a. Inventory b.Cost of goods sold c. SalesVoltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 119,000 pesos on credit. May 1 Sold 60 percent of the inventory for 99,000 pesos on credit. August 1 Collected 79,500 pesos from customers. September 1 Paid 69,500 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. Voltac will report each of the following accounts on its 2020 financial statements. Inventory $8,092 Cost of goods sold $12,138 Sales $17,820 Accounts receivable $4,095 Accounts payable $10,395 Cash $1,205 What are the corresponding journal entries?
- Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 118,000 pesos on credit. May 1 Sold 80 percent of the inventory for 98,000 pesos on credit. August 1 Collected 79,000 pesos from customers. September 1 Paid 69,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.16 May 1 0.17 August 1 0.18 September 1 0.19 December 31 0.20 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 118,000 pesos on credit. May 1 Sold 80 percent of the inventory for 98,000 pesos on…Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: Bought inventory costing 116,000 pesos on credit. March 1 May 1 August 1 September 1 Sold 60 percent of the inventory for 96,000 pesos on credit. Collected 78,000 pesos from customers. Paid 68,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date March 1 May 1 August 1 September 1 December 31 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? a b C d Inventory Cost of goods sold Sales Accounts receivable U.S. Dollar per Peso $ 0.25 0.26 0.27 0.28 0.29 e Accounts payable f CashVoltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 113,000 pesos on credit. May 1 August 1 Sold 60 percent of the inventory for 93,000 pesos on credit. Collected 76,500 pesos from customers. September 1 Paid 66,500 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date March 1 May 1 August 1 September 1 December 31 с Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? a b d Inventory Cost of goods sold Sales U.S. Dollar per Peso $ 0.22 0.23 0.24 0.25 0.26 Accounts receivable e Accounts payable f Cash