FUND.ACCT.PRIN.(LOOSELEAF)
25th Edition
ISBN: 9781260780208
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 15A, Problem 20QS
To determine
Concept Introduction:
Foreign Exchange Rate: It refers to the price of one currency which is expressed in terms of the currency of another country. In other words, the foreign exchange rate is the rate at which the currency of two countries is exchanged.
To prepare: Journal record to pass entries for the sales and the receipt of payment when exchange rates were changed to $1.35.
Expert Solution & Answer
Explanation of Solution
Information Assumed:
The exchange rate at the time of purchase was $1.45
Exchange rates were $1.35 at the time of receivables payment
Credit sales of 10,000 pounds
In this situation, Company sold merchandise of amount 10,000 pounds when exchange rates were $1.45 per pound. At the time of cash receipts, the exchange rates were reduced and the company will bear an exchange loss of $1000.
Following are the
| Date | Particulars | Debit | Credit |
| $14,500 | |||
| Sales | $14,500 | ||
| Record the sales of 10,000 pounds when exchange rates were $1.45 per pound | |||
| Cash | $13,500 | ||
| Foreign exchange loss | $1,000 | ||
| Accounts receivables | $14,500 | ||
| Record foreign exchange loss at the time of cash receipts on merchandise sale |
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
1. Mayer Corporation had sales of $24,000, cost of sales of $10,000 advertising expense of $8,500 and income tax expense of $1,500.
What is gross profit?
2. Mayer Corporation had sales of $24,000, cost of goods sales of $10,000, advertising expenses of $8, 500 and income expense of
$1,500. What is operating profit?
Which of the following is one of the purposes of standard costs?
a) To aid in planning controlling and cost-volume-profit analysis.
b) To replace budgets and budgeting.
c) To use them as a basis for external-reporting purposes.
d) To eliminate having to account for under-applied or over-applied
factory overhead.
e) None of these.
General Account
Chapter 15A Solutions
FUND.ACCT.PRIN.(LOOSELEAF)
Knowledge Booster
Similar questions
- To measure controllable production inefficiencies, which of the following is the best basis for a company to use in establishing the standard hours allowed for the output of one unit of product? a) Average historical performance for the last several years. b) Engineering estimates based on ideal performance. c) Engineering estimates based on attainable performance. d) The hours per unit that would be required for the present workforce to satisfy expected demand over the long run.arrow_forwardNeed general account solutionarrow_forwardFinancial Account information is presented below: Operating expenses $ 54,000 Sales returns and allowances 6,000 Sales discounts 8,000 Sales revenue 1,78,000 Cost of goods sold 92,000 Gross Profit would be: a. $92,000. b. $80,000. c. $86,000. d. $72,000.arrow_forward
- Which of the following statements is true? A. In a standard costing system, standard costs can only be used for cost control. B. In a standard costing system, standard costs can only be used for product costing. C. In a standard costing system, standard costs are used for both cost control and product costing. D. In a normal costing system, standard costs are used for cost control, and normal costs are used for product costing.arrow_forwardWhich of the following is not a correct expression of the accounting equation? a. Assets Liabilities + Owners Equity. b. Assets Liabilities Owners Equity. c. Assets Liabilities + Paid-In Capital + Retained Earnings. d. Assets = Liabilities + Paid-In Capital + Revenues Expenses. e. Assets Liabilities = Owners Equity.arrow_forwardOn January 1, 2017, Christel Madan Corporation had inventory of $54,500. At December 31, 2017, Christel Madan had the following account balances. Freight-in Purchases Purchase discounts Purchase returns and allowances Sales revenue $ 4,500 $5,10,000 $7,350 $ 3,700 $ 8,08,000 $ 5,900 $ 11,100 Sales discounts Sales returns and allowances At December 31, 2017, Christel Madan determines that its ending inventory is $64,500. Compute Christel Madan's 2017 gross profit.arrow_forward
- General Accountingarrow_forwardFinancial Accountingarrow_forwardBlue Corporation's standards call for 3,000 direct labor-hours to produce 1,200 units of product. During May 1,000 units were produced and the company worked 1,100 direct labor-hours. The standard hours allowed for May production would be: A. 3,000 hours. B. 1,100 hours. C. 2,500 hours. D. 2,000 hours.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
