PROBLEM 3 Mee Co. acquired inventory from a foreign entity for 100,000 FCUs (foreign currency units). The term is FOB Shipping Point. Relevant information follows: Date Dec. 1, 20x1 Dec. 22, 20x1 Dec. 31, 20x1 Jan. 8,20x2 Particulars Place of order Date of shipment End of reporting period Settlement date Exchange rates (1 FCU to LCUS) 13.70 LCUS 13.75 13.80 13.50 Requirements: a. How much accounts payable is initially recognized form the transaction? b. How much is the foreign exchange gain (loss) is recognized in Mee's 20x1 statement of profit or loss? c. How much inventory from the transaction is included in Mee's 20x1 statement of financial position? d. How much accounts payable from the transaction is included in Mee's 20x1 statement of financial position? e. How much is the foreign exchange gain (loss) is recognized in Mee's 20x2 statement of profit or loss? f. How much is the total foreign exchange gain (loss) recognized from the transaction?
PROBLEM 3 Mee Co. acquired inventory from a foreign entity for 100,000 FCUs (foreign currency units). The term is FOB Shipping Point. Relevant information follows: Date Dec. 1, 20x1 Dec. 22, 20x1 Dec. 31, 20x1 Jan. 8,20x2 Particulars Place of order Date of shipment End of reporting period Settlement date Exchange rates (1 FCU to LCUS) 13.70 LCUS 13.75 13.80 13.50 Requirements: a. How much accounts payable is initially recognized form the transaction? b. How much is the foreign exchange gain (loss) is recognized in Mee's 20x1 statement of profit or loss? c. How much inventory from the transaction is included in Mee's 20x1 statement of financial position? d. How much accounts payable from the transaction is included in Mee's 20x1 statement of financial position? e. How much is the foreign exchange gain (loss) is recognized in Mee's 20x2 statement of profit or loss? f. How much is the total foreign exchange gain (loss) recognized from the transaction?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:PROBLEM 3
Mee Co. acquired inventory from a foreign entity for 100,000 FCUS (foreign currency units). The
term is FOB Shipping Point. Relevant information follows:
Date
Dec. 1, 20x1
Dec. 22, 20x1
Dec. 31, 20x1
Jan. 8,20x2
Particulars
Place of order
Date of shipment
End of reporting period
Settlement date
Exchange rates (1 FCU to LCUS)
13.70 LCUS
13.75
13.80
13.50
Requirements:
a. How much accounts payable is initially recognized form the transaction?
b. How much is the foreign exchange gain (loss) is recognized in Mee's 20x1 statement of profit or loss?
c. How much inventory from the transaction is included in Mee's 20x1 statement of financial position?
How much accounts payable from the transaction is included in Mee's 20x1 statement of financial
position?
d.
e. How much is the foreign exchange gain (loss) is recognized in Mee's 20x2 statement of profit or loss?
f. How much is the total foreign exchange gain (loss) recognized from the transaction?
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