PT A has foreign currency balances as of December 31, 2015 as follows:Account nameForeign currencyBalance as of December 31, 2015BankUSD 100Rp 1.100.000Account ReceivableUSD 200Rp 2.200.000Account PayableUSD 300Rp 3.300.000Capital StockUSD 400Rp 4.400.000 (according to the deed)RequiredCompute and make adjusting entries on arising if the BI middle rate on December 31, 2015 was 1 USD is Rp 12,000!

When assets and liabilities are converted into foreign currency, the difference is debited/credited…

Answered: PT A has foreign currency balances as…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PT A has foreign currency balances as of December 31, 2015 as follows:

Account name	Foreign currency	Balance as of December 31, 2015
Bank	USD 100	Rp 1.100.000
Account Receivable	USD 200	Rp 2.200.000
Account Payable	USD 300	Rp 3.300.000
Capital Stock	USD 400	Rp 4.400.000 (according to the deed)

Required

Compute and make adjusting entries on arising if the BI middle rate on December 31, 2015 was 1 USD is Rp 12,000!

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