REQUIREDPrepare journal entries for the purchase transaction held on December 1, 2020. Prepare the forward contract transaction entered into on December 1, 2020. Prepare the journal entries to track the accounts payable and the forward contract on December 31, 2020, for Chrysler Exporters Inc. financial statements. Question 3Chrysler Exporters Inc., a US wholesaler is engaged in foreign trade. The following transactionswere recorded:On December 1, 2020, Chrysler Exporters Inc., purchased merchandise from Chang's Ltd aI.Japanese manufacturer. The invoice was for ¥500,000, payable on April 1, 2021.On the same day, Chrysler Exporters Inc. accepted a forward exchange contract (forwardII.contract) to buy ¥500,000 on April 1, 2021.On April 1, 2021, the ¥500,000 was delivered on the contract and the supplier was settled.The spot rates and the forward rates were as follows:III.IV.DateSpot rateForward ratefor delivery (¥) on April 1, 2021December 1, 2020$0.0084$0.0089December 31, 20200.00830.0088April 1, 20210.0092

The question is related Journal Entires to be made in the books of Chrysler Exporters Inc. regarding…

Prepare journal entries for the purchase transaction held on December 1, 2020. Prepare the forward contract transaction entered into on December 1, 2020. Prepare the journal entries to track the accounts payable and the forward contract on December 31, 2020, for Chrysler Exporters Inc. financial statements.

Prepare journal entries for the purchase transaction held on December 1, 2020. Prepare the forward contract transaction entered into on December 1, 2020. Prepare the journal entries to track the accounts payable and the forward contract on December 31, 2020, for Chrysler Exporters Inc. financial statements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The…

A: Bond Valuation It is important to make the present value concept to valuation in the bond which has…

Q: (c) Prepare the necessary journal entry to record the capitalization of interest and the…

A: pay for construction $200,000 was borrowed on March 1 on a 12%, three-year note payable. The only…

Q: On May 1, 2025, Sunland Company enters into a contract to transfer a product to Charlie Company on…

A: As per IFRS 15 "Revenue from contracts with customers" The cash received in advance will be…

Q: Bonita Commodities Company signed a long-term noncancelable purchase commitment with a major…

A: Purchase commitment is the agreement between buyer and seller. It indicates the transection to be…

Q: On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a…

A: The business organizations enter the transactions into the journal for the purpose of keeping track…

Q: Use the information for Geiberger Corporation from BE21.12, except assume the collectibility of the…

A: Since, the question is based on the previous question and you have not provided the question, I am…

Q: Pina Corporation leased equipment to Kingbird, Inc. on January 1, 2020. The lease agreement called…

A: The lease is an agreement where one party agrees to provide the right to use the asset to the…

Q: On 1 December 2019 Airline de Afrique sold ten return airline tickets for R12 500 each to passengers…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: Cullumber Sleeper Ltd. manufactures and sells mattresses to retailers across Canada. In 2024,…

A: The question is based on the concept of Financial Accounting.Journalising is the first step in…

Q: Flint Corp. has the following securities (all purchased in 2023) in its investment portfolio on…

A: Investments The assets that are acquired by a company for a period of more than a year are…

Q: he following are the balances of the liability accounts of ABC Company as of December 31,2021:…

A: Concept Account payable with debit balance has to net off and presented with single amount When the…

Q: Prepare journal entries to record the warranty expense for the period and payment for the actual…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: I am not sure how to put this balance sheet together? Based on the following information and the…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The…

A: Bond Amortization Amortization of bond which are include with whether it is treated in the interest…

Q: On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a…

A: Journal entries refers to the systematic documentation of the financial transactions of a company in…

Q: a. Journalize the write-offs for 2019 under the direct write-off method. b. Journalize the…

A: Journal Entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: The following is an alphabetical list of Lloyd’s Hudson Dealership Inc.’s December 31, 2019, balance…

A: A Balance Sheet is the financial statement that is prepared by every organization at the end of an…

Q: Skysong Company uses the LIFO method for financial reporting purposes but FIFO for internal…

A: LIFO: LIFO stands for Last in First out. While making inventory valuations the last received…

Q: ! Required information [The following information applies to the questions displayed below.] On…

A: A journal is the company's official book on which all business transactions are recorded in…

Q: Whispering Company signed a long-term noncancelable purchase commitment with a major supplier to…

A: A journal entry is used to record a business transaction in the company's accounting records.…

Q: On January 5, 2019, our company receives a nonbinding purchase order for sale of merchandise to a…

A: Introduction A company's financial statements can contain information about a transaction by…

Q: Sandhill Company sells tablet PCs combined with Internet service, which permits the tablet to…

A: Journal is the book of original entry in which all the financial transactions relating to the…

Question

REQUIRED

Prepare journal entries for the purchase transaction held on December 1, 2020.
Prepare the forward contract transaction entered into on December 1, 2020.
Prepare the journal entries to track the accounts payable and the forward contract on December 31, 2020, for Chrysler Exporters Inc. financial statements.

Question 3
Chrysler Exporters Inc., a US wholesaler is engaged in foreign trade. The following transactions
were recorded:
On December 1, 2020, Chrysler Exporters Inc., purchased merchandise from Chang's Ltd a
I.
Japanese manufacturer. The invoice was for ¥500,000, payable on April 1, 2021.
On the same day, Chrysler Exporters Inc. accepted a forward exchange contract (forward
II.
contract) to buy ¥500,000 on April 1, 2021.
On April 1, 2021, the ¥500,000 was delivered on the contract and the supplier was settled.
The spot rates and the forward rates were as follows:
III.
IV.
Date
Spot rate
Forward rate
for delivery (¥) on April 1, 2021
December 1, 2020
$0.0084
$0.0089
December 31, 2020
0.0083
0.0088
April 1, 2021
0.0092

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1Basic Information

Step 2 Solution

Step 3 Solution

Step 4 Solution

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

A seller reports accounts receivable, “contract liabilities,” and “contract assets” on separate lines of its balance sheet. Describe about the statement.
Access the FASB’s Accounting Standards Codification at the FASB website (www.fasb.org) and select Basic View for free access. Required: Determine the specific nine-digit Codification citation (XXX-XX-XX-XX) for accounting for each of the following items: What are the five key steps to applying the revenue recognition principle? What are indicators that control has passed from the seller to the buyer, such that it is appropriate to recognize revenue at a point in time? Under what circumstances can sellers recognize revenue over time?
On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $20,000 on March 31, 2022. The fair value of the merchandise exchanged is $18,500. Esquire views the financing component of this contract as significant.Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2021 interest accrual, and the March 31, 2022 collection.2. What is the effective interest rate on the note?
At December 31, 2020, Grouper Company has outstanding noncancelable purchase commitments for 39.500 gallons, at $4.02 per gallon, of raw material to be used in its manufacturing process. The company prices its raw material inventory at cost or market, whichever is lower. Your answer is partially correct. Assuming that the market price as of December 31, 2020, is $3.62, record the journal entry. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for the amounts. Round answers to O decimal places, eg. 6,225) Date Account Titles and Explanation Credit Estimated Liability on Purchase Cont
Please help me
On January 1, 2023 (the first day of its fiscal year) Blossom Ltd. acquired a patent which gave the company the right to use a production process. The process met the six criteria for capitalization as an intangible asset. Below is a listing of the events relating to the patent over the five fiscal years from 2023 through 2027: 2023: on January 1, acquired the patent for the production process for a cash payment of $17,500,000, and determined that the process had an indefinite useful life. on December 31, tested the patent for impairment and determined that its fair value was $18,200,000. 2024: on December 31, tested the patent for impairment and determined that its fair value was $16,400,000. 2025: on December 31, tested the patent for impairment and determined that its fair value was $17,300,000. 2026: on January 1, determined that the useful life of the patent was no longer indefinite, its carrying amount was recoverable, its estimated remaining useful life was 8 years, its…
On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $35,000 on March 31, 2025. The fair value of the merchandise exchanged is $33,950. Esquire views the financing component of this contract as significant. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold). any December 31, 2024 interest accrual, and the March 31, 2025 collection. 2. What is the effective interest rate on the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 ces Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2024 interest accrual, and the March 31, 2025 collection. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not…
On January 5, 2019, our company receives a nonbinding purchase order for sale of merchandise to a customer in Slovakia, with delivery of the merchandise scheduled for June 30, 2019. The customer preliminarily agreed to pay €650,000 for the merchandise, and payment is due from the customer upon delivery. On January 5, 2019, our company also purchases an option that gives our company the right to sell (i.e., put) €650,000 on any date until June 30, 2019 (i.e., it is an “American-style” option) for $1.28:€1 (i.e., the spot rate on January 5, 2019). On January 5, 2019, the fair value of the option (i.e., the option premium) is $19,500. In addition, our company elected to immediately include in the determination of net income all of the change in option value attributable to factors excluded from the assessment of hedge effectiveness (i.e., the non-intrinsic-value components, like time value). The relevant exchange rates and related balances for the period from January 5, 2019, to June 30,…
Pearl Commodities Company signed a long-term noncancelable purchase commitment with a major vegetable supplier to purchase produce in 2021 at a cost of $637,000. At December 31, 2020, the produce to be purchased has a market value of $573,300. Prepare any necessary December 31, 2020 entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31
Assume that the business has received notification on 15 April 2020 that a debtor owing $1,850 has declared bankruptcy. On 22 August 2020 the debtor unexpectedly remits full payment for the previously written-off account. Prepare the general journal entry to re-establish this debt and record payment under each of the following methods: (i) The direct write-off method (ii) The allowance method
The following are the balances of the liability accounts of ABC Company as of December 31,2021:Accounts payable - P 1,000,000(recognized for purchase of inventories, including a debit balance in the suppliers account of P 150,000) The following are not yet reflected in the balance of accounts payable above:- Upon receipt of the goods on January 1,2022 costing P 175,000, the accounting staff of ABC Company recorded the purchase in the accounts. It was determined that the goods were shipped Shipping point on December 31,2021.-Goods with invoice cost of P 255,000 which were shipped FOB Destination on December 31,2021 from a vendor were lost in transit. On January 2, 2022, vendor filed a claim against the shipping company.Notes payable - P 1,500,000, composed of the following: - 10% , P 750,000 interest bearing note , issuance date: Jan.1,2019 ; due: December 31,2023 ( interest is payable annually) - 12%,P 750,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024…
Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries.The company prepares annual adjusting entries.