U.S. Company purchases from Japanese Company for 60 million yen when the exchange rate is $.009. U.S. Company makes payment a day when the exchange rate is .0085. When recording the journal entry for payment the U.S. Company will report: a. Cash debit $540,000 b. Cash credit $540,000 c. Loss $30,000 d. Gain $30,000
U.S. Company purchases from Japanese Company for 60 million yen when the exchange rate is $.009. U.S. Company makes payment a day when the exchange rate is .0085. When recording the journal entry for payment the U.S. Company will report: a. Cash debit $540,000 b. Cash credit $540,000 c. Loss $30,000 d. Gain $30,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5. U.S. Company purchases from Japanese Company for 60 million yen when the
exchange rate is $.009. U.S. Company makes payment a day when the exchange rate is .0085.
When recording the
a. Cash debit $540,000
b. Cash credit $540,000
c. Loss $30,000
d. Gain $30,000
Please show work. Do not use excel
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