On November 15, 2020, Celt, Inc., a Philippine company located in Baguio City, ordered merchandise FOB shipping point from a German Company for 200,000 marks. The merchandise as shipped and invoiced to Celt on December 10, 2009. Celt paid the invoice on January 1, 2021. The spot rates for marks on the respective dates are as follows:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
2.
On November 15, 2020, Celt, Inc., a Philippine company located in Baguio City, ordered
merchandise FOB shipping point from a German Company for 200,000 marks. The merchandise
as shipped and invoiced to Celt on December 10, 2009. Celt paid the invoice on January 1, 2021.
The spot rates for marks on the respective dates are as follows:
November 15, 2020
December 10, 2020
P22.4955
22.4875
December 31, 2020
22.4675
January
10, 2021
22.4475
In Celt's December 31, 2020 income statement, the foreign exchange gain is?
Transcribed Image Text:2. On November 15, 2020, Celt, Inc., a Philippine company located in Baguio City, ordered merchandise FOB shipping point from a German Company for 200,000 marks. The merchandise as shipped and invoiced to Celt on December 10, 2009. Celt paid the invoice on January 1, 2021. The spot rates for marks on the respective dates are as follows: November 15, 2020 December 10, 2020 P22.4955 22.4875 December 31, 2020 22.4675 January 10, 2021 22.4475 In Celt's December 31, 2020 income statement, the foreign exchange gain is?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Revenue Recognition
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education