Nour company (a U.S. company) began operations on December 1, 2020, when Nour Invested $150,000 of her cash savings in the business. In the first month of operations, Nour had the following transactions: December 3, 2020 Bought inventory for 100,000 foreign currency units (FCU) on account. Must be paid with foreign currency units. December 8, 2020 Sold 60% of inventory acquired on 1/12/20 for 32,000 British pounds on account. Invoice denominated in British pounds December 10, 2020 Paid $3,000 in other operating expenses December 23, 2020 Acquired and paid half of the foreign currency units. owed to the foreign supplier December 28, 2020 Collected half of the 32,000 pounds from the customer in Great Britain and immediately converted them into U.S. dollars The following exchange rates apply: Date Rate Rate December 3 $.6260 = 1 FCU $1.5950 = 1 pound December 8 $.6230 = 1 FCU $1.5760 = 1 pound December 10 $.6210 = 1 FCU $1.5880 = 1 pound December 23 $.6250 = 1 FCU $1.5610 = 1 pound December 28 $.6330 = 1 FCU $1.5570 = 1 pound December 31 $.6180 = 1 FCU $1.5720 = 1 pound Required: Prepare the required journal entries (Including the adjusting entries) at Nour company to record the previous transactions. Assuming there were no other transactions, Calculate the net income for the month ended December 31, 2020 and Calculate the amounts that should appear in the balance sheet of Nour company on December 31, 2020, for the following items: Accounts Receivable. Accounts Payable.
Nour company (a U.S. company) began operations on December 1, 2020, when Nour Invested $150,000 of her cash savings in the business. In the first month of operations, Nour had the following transactions:
December 3, 2020 Bought inventory for 100,000 foreign currency units (FCU) on account. Must be paid with foreign currency units.
December 8, 2020 Sold 60% of inventory acquired on 1/12/20 for 32,000 British pounds on account. Invoice denominated in British pounds
December 10, 2020 Paid $3,000 in other operating expenses
December 23, 2020 Acquired and paid half of the foreign currency units. owed to the foreign supplier
December 28, 2020 Collected half of the 32,000 pounds from the customer in Great Britain and immediately converted them into U.S. dollars
The following exchange rates apply:
Date Rate Rate
December 3 $.6260 = 1 FCU $1.5950 = 1 pound
December 8 $.6230 = 1 FCU $1.5760 = 1 pound
December 10 $.6210 = 1 FCU $1.5880 = 1 pound
December 23 $.6250 = 1 FCU $1.5610 = 1 pound
December 28 $.6330 = 1 FCU $1.5570 = 1 pound
December 31 $.6180 = 1 FCU $1.5720 = 1 pound
Required:
- Prepare the required
journal entries (Including theadjusting entries ) at Nour company to record the previous transactions. - Assuming there were no other transactions, Calculate the net income for the month ended December 31, 2020 and Calculate the amounts that should appear in the
balance sheet of Nour company on December 31, 2020, for the following items:
Accounts Receivable .
Accounts Payable.
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