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 wereMay 11 yen = $0.0070June 201 yen = 0.0075On 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 wereJuly 11 real = $0.20August 101 real = 0.22Required:-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. Required ARequired BAssume that the two transactions are denominated in the applicable LCUS of the foreign entities. Prepare the entries redfor the dates of the transactions and their settlement in the LCUS of the Japanese company (yen) and the Brazilian cust(real).Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Roundintermediate calculations and final answers to nearest whole number.No1DateMay 01General JournalInventory (or Purchases)Accounts payable (#)2June 20Foreign currency transaction lossAccounts payable (*)3June 20Accounts payable (¥)Cash4June 20Accounts payable (*)CashShow lDebitCredit6,2006,2004434436,6436,6436,6436,6435July 01Accounts receivable (BRL)Sales10,20010,20060August 10Accounts receivable (BRL)1,020Foreign currency transaction gain1,0207August 10CashAccounts receivable (BRL)51,00051,000

Here's a summary of the journal entries in table format:No.DateGeneral Journal…

Answered: Required A Required B Assume that the…

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter3: The General Journal And The General Ledger

Section: Chapter Questions

Problem 4QY: The __________ is used to determine where the amount in the ledger comes from. a. debit amount b....

May 1	1 yen = $0.0070
June 20	1 yen = 0.0075

July 1	1 real = $0.20
August 10	1 real = 0.22

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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:

1

Record the foreign purchase denominated in Japanese yen.
2

Record the revaluation of the foreign currency payable to the U.S. dollar equivalent value.
3

Record the purchase of Japanese yen to settle the account payable at the June 20 spot rate.
4

Record the settlement of the payable denominated in Japanese yen.
5

Record the foreign sales denominated in Brazilian reals.
6

Record the revaluation of foreign currency payable to the U.S. dollar equivalent value.
7

Record the receipt of Brazilian reals in the settlement of the receivables.

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