Required A Required B Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUS of the Japanese company (yen) and the Brazilian customer (real). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to nearest whole number. No 1 Date May 01 General Journal Inventory (or Purchases) Accounts payable (*) Show less▲ Debit Credit 6,200 6,200 2 June 20 Accounts payable (¥) × 6,200 Foreign currency transaction loss 443 × Cash 6,643 3 June 20 Cash 4 June 20 Cash 5 July 01 Accounts receivable (BRL) Sales 6 August 10 Cash Accounts receivable (BRL) Foreign currency transaction gain 7 August 10 Cash Accounts receivable (BRL) < Required A Required B > 6,643 885,714 > 10,200 10,200 × 11,220 10,200 1,020 51,000 51,000 ×
Required A Required B Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUS of the Japanese company (yen) and the Brazilian customer (real). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to nearest whole number. No 1 Date May 01 General Journal Inventory (or Purchases) Accounts payable (*) Show less▲ Debit Credit 6,200 6,200 2 June 20 Accounts payable (¥) × 6,200 Foreign currency transaction loss 443 × Cash 6,643 3 June 20 Cash 4 June 20 Cash 5 July 01 Accounts receivable (BRL) Sales 6 August 10 Cash Accounts receivable (BRL) Foreign currency transaction gain 7 August 10 Cash Accounts receivable (BRL) < Required A Required B > 6,643 885,714 > 10,200 10,200 × 11,220 10,200 1,020 51,000 51,000 ×
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 11EB: Identify whether ongoing transactions posted to the following accounts would normally have only...
Related questions
Question
1.)
Harris Incorporated had the following transactions:
-
On May 1, Harris purchased parts from a Japanese company for a U.S. dollar–equivalent value of $6,200 to be paid on June 20. The exchange rates were
May 1 1 yen = $0.0070 June 20 1 yen = 0.0075 -
On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,200, to be received on August 10. Brazil’s local currency unit is the real. The exchange rates were
July 1 1 real = $0.20 August 10 1 real = 0.22
Required:
- -
- Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUs of the Japanese company (yen) and the Brazilian customer (real).
For Part B:
-
1Record the foreign purchase denominated in Japanese yen.
-
2Record the revaluation of the foreign currency payable to the U.S. dollar equivalent value.
-
3Record the purchase of Japanese yen to settle the account payable at the June 20 spot rate.
-
4Record the settlement of the payable denominated in Japanese yen.
-
5Record the foreign sales denominated in Brazilian reals.
-
6Record the revaluation of foreign currency payable to the U.S. dollar equivalent value.
-
7Record the receipt of Brazilian reals in the settlement of the receivables.
Transcribed Image Text:Required A Required B
Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required
for the dates of the transactions and their settlement in the LCUS of the Japanese company (yen) and the Brazilian customer
(real).
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your
intermediate calculations and final answers to nearest whole number.
No
1
Date
May 01
General Journal
Inventory (or Purchases)
Accounts payable (*)
Show less▲
Debit
Credit
6,200
6,200
2
June 20
Accounts payable (¥)
×
6,200
Foreign currency transaction loss
443 ×
Cash
6,643
3
June 20
Cash
4
June 20
Cash
5
July 01
Accounts receivable (BRL)
Sales
6
August 10
Cash
Accounts receivable (BRL)
Foreign currency transaction gain
7
August 10
Cash
Accounts receivable (BRL)
< Required A
Required B >
6,643
885,714 >
10,200
10,200
×
11,220
10,200
1,020
51,000
51,000 ×
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