Required A Required B Prepare journal entries for Rone to record the purchase, the adjustment on December 31, and the settlement. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Date General Journal 1 December 1, 20X1 Inventory (or Purchases) Accounts payable (SFr) Debit 10,500 Credit 10,500 2 December 31, 20X Accounts payable (SFr) 600 Foreign currency transaction gain 600 3 January 15, 20X2 Accounts payable (SFr) 10,200 10,200 4 Cash January 15, 20X2 Foreign currency transaction gain Accounts payable (SFr) 5 January 15, 20X2 Inventory (or Purchases) Accounts payable (SFr) < Required A Required B > 300 300 10,500 × 10,500

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 7SEB: JOURNALIZING SALES RETURNS AND ALLOWANCES Enter the following transactions starting on page 60 of a...
icon
Related questions
Question

2)

On December 1, 20X1, Rone Imports, a U.S. company, purchased clocks from Switzerland for 15,000 francs (SFr) to be paid on January 15, 20X2. Rone’s fiscal year ends on December 31, and its reporting currency is the U.S. dollar. The exchange rates are

December 1, 20X1 1 SFr = $0.70
December 31, 20X1 1 SFr = 0.66
January 15, 20X2 1 SFr = 0.68

b. Prepare journal entries for Rone to record the purchase, the adjustment on December 31, and the settlement.

Required A
Required B
Prepare journal entries for Rone to record the purchase, the adjustment on December 31, and the settlement.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
Date
General Journal
1
December 1, 20X1 Inventory (or Purchases)
Accounts payable (SFr)
Debit
10,500
Credit
10,500
2
December 31, 20X Accounts payable (SFr)
600
Foreign currency transaction gain
600
3
January 15, 20X2 Accounts payable (SFr)
10,200
10,200
4
Cash
January 15, 20X2 Foreign currency transaction gain
Accounts payable (SFr)
5
January 15, 20X2 Inventory (or Purchases)
Accounts payable (SFr)
< Required A
Required B >
300
300
10,500 ×
10,500
Transcribed Image Text:Required A Required B Prepare journal entries for Rone to record the purchase, the adjustment on December 31, and the settlement. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Date General Journal 1 December 1, 20X1 Inventory (or Purchases) Accounts payable (SFr) Debit 10,500 Credit 10,500 2 December 31, 20X Accounts payable (SFr) 600 Foreign currency transaction gain 600 3 January 15, 20X2 Accounts payable (SFr) 10,200 10,200 4 Cash January 15, 20X2 Foreign currency transaction gain Accounts payable (SFr) 5 January 15, 20X2 Inventory (or Purchases) Accounts payable (SFr) < Required A Required B > 300 300 10,500 × 10,500
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College