Chapter 11, Problem 11.24P

a

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for Australian dollars on December 1, 20X5 and December 31, 20X5.

b

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the account foreign currency payable to exchange broker in the adjusted trial balance.

c

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate when D entered into the 60-day forward contract to sell A$70,000.

d

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The amount of dollars receivable from exchange broker in the adjusted trial balance.

e

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The indirect exchange rate for South Korean won on October 2, 20X5, and what was the indirect exchange rate on December 31, 20X5.

f

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The balance in the dollar payable account to exchange broker in both the unadjusted and the adjusted trial balance

g

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The direct exchange rate for 120 days forward contract when D purchase KRW400,000

h

To determine

Introduction: Foreign currency transactions include sales, purchases, or any transaction that involves the exchange of foreign currency. As the financial statements of all U.S.-based companies are prepared using the U.S. dollar, any transaction that takes place in non-U.S dollar currency must be translated to U.S. dollars for the purpose of accounting it. Subsidiaries and branches of U.S. companies having multinational operations must also translate their financial statements to U.S dollars.

The Accounts payable balance at December 31, 20X5.