Required A Required B Assume that the two transactions are denominated in the applicable LCUS of the foreign entities. Prepare the entries red for 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. Round intermediate calculations and final answers to nearest whole number. No 1 Date May 01 General Journal Inventory (or Purchases) Accounts payable (#) 2 June 20 Foreign currency transaction loss Accounts payable (*) 3 June 20 Accounts payable (¥) Cash 4 June 20 Accounts payable (*) Cash Show l Debit Credit 6,200 6,200 443 443 6,643 6,643 6,643 6,643 5 July 01 Accounts receivable (BRL) Sales 10,200 10,200 60 August 10 Accounts receivable (BRL) 1,020 Foreign currency transaction gain 1,020 7 August 10 Cash Accounts receivable (BRL) 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 red for 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. Round intermediate calculations and final answers to nearest whole number. No 1 Date May 01 General Journal Inventory (or Purchases) Accounts payable (#) 2 June 20 Foreign currency transaction loss Accounts payable (*) 3 June 20 Accounts payable (¥) Cash 4 June 20 Accounts payable (*) Cash Show l Debit Credit 6,200 6,200 443 443 6,643 6,643 6,643 6,643 5 July 01 Accounts receivable (BRL) Sales 10,200 10,200 60 August 10 Accounts receivable (BRL) 1,020 Foreign currency transaction gain 1,020 7 August 10 Cash Accounts receivable (BRL) 51,000 51,000
College Accounting (Book Only): A Career Approach
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....
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 red
for 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. Round
intermediate calculations and final answers to nearest whole number.
No
1
Date
May 01
General Journal
Inventory (or Purchases)
Accounts payable (#)
2
June 20
Foreign currency transaction loss
Accounts payable (*)
3
June 20
Accounts payable (¥)
Cash
4
June 20
Accounts payable (*)
Cash
Show l
Debit
Credit
6,200
6,200
443
443
6,643
6,643
6,643
6,643
5
July 01
Accounts receivable (BRL)
Sales
10,200
10,200
60
August 10
Accounts receivable (BRL)
1,020
Foreign currency transaction gain
1,020
7
August 10
Cash
Accounts receivable (BRL)
51,000
51,000
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