ADV. ACCT LOOSELEAF W/ CONNECT ACCESS
13th Edition
ISBN: 9781266324857
Author: Hoyle
Publisher: MCG
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Question
Chapter 10, Problem 1DYS
a.
To determine
Identify the location(s) in the annual report that provides disclosures related to the translation of foreign currency financial statements and foreign currency hedging.
b.
To determine
Determine whether the company’s foreign operations have a predominant functional currency.
c.
To determine
Determine the amount of re-measurement gain or loss, if any, reported in net income in each of the three most recent years.
d.
To determine
Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years.
e.
To determine
Determine whether the company hedges net investments in foreign operations. If so, determine the type(s) of hedging instrument used.
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Journal entries for an accounts receivable denominated in Swiss Francs ($US strengthens and weakens)
Assume that your company sells products to a customer located in Switzerland on November 20. The invoice specifies that payment
is to be made on February 20 in Swiss Francs (CHF) in the amount of CHF 250,000. Your company operates on a calendar year basis.
Assume the following exchange rates:
November 20 $1.12:1CHF
December 31 $1.09.1CHF
February 20 $1.11:1CHF
Prepare the journal entries to record the sale (ignore cost of goods sold), the required adjusting entry at December 31, and the receipt
of payment February 20.
Description
Date
11/20 Accounts receivable
Sales
12/31 Foreign currency transaction loss
Accounts receivable
2/20 Cash
Accounts receivable
Accounts receivable
Debit
+ ✓ 250,000 x
+ ✓
✓
# ✓
0✓
10,000 x
0✓
÷ ✓
277,500✔
ooo
4
x
0✔
0✓
Credit
0✓
250,000 x
0✓
10,000 x
277,500 x
0x
How much from the list above should be presented as part of noncurrent assets
4,900,000
1,000,000
4,000,000
5,500,000
Chapter 10 Solutions
ADV. ACCT LOOSELEAF W/ CONNECT ACCESS
Ch. 10 - Prob. 1QCh. 10 - What causes balance sheet (or translation)...Ch. 10 - Prob. 3QCh. 10 - Prob. 4QCh. 10 - Prob. 5QCh. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - Prob. 8QCh. 10 - Prob. 9QCh. 10 - Prob. 10Q
Ch. 10 - Prob. 11QCh. 10 - Which translation method does U.S. GAAP require...Ch. 10 - Prob. 13QCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - What amount does Newberrys consolidated income...Ch. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - A foreign subsidiarys functional currency is its...Ch. 10 - Prob. 19PCh. 10 - Prob. 20PCh. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - The following accounts are denominated in rubles...Ch. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - Sullivans Island Company began operating a...Ch. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 33PCh. 10 - The following account balances are for the Agee...Ch. 10 - Prob. 35PCh. 10 - Prob. 36PCh. 10 - Prob. 37PCh. 10 - Prob. 38PCh. 10 - Prob. 1DYSCh. 10 - RESEARCH CASE 2FOREIGN CURRENCY TRANSLATION...Ch. 10 - Prob. 3DYSCh. 10 - Prob. 4DYSCh. 10 - Prob. 5DYS
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