Agentel Corporation is a U.S.-based importing-exporting company. The company entered into the following transactions during the month of November. Nov. 6 Purchased merchandise from AGT, a Swiss firm, for 540,000 francs. 5 Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $200,000. 18 Sold merchandise to TNT, Ltd., a British firm, for 140,000 pounds. 20 Purchased merchandise from SDS, Ltd., a British firm, for $170,000. All the transactions were unsettled at December 31, Agentel’s fiscal year-end. Spot rates are as follows: Currency Date Franc Real Pound November 6 $0.490 $0.412 $1.520 November 15 0.487 0.409 1.509 November 18 0.476 0.414 1.506 November 20 0.468 0.405 1.498 December 31 0.460 0.398 1.482 (a) Your answer is correct. Compute the amount that Agentel would report for each unsettled receivable and payable in its balance sheet prepared at December 31. Amount Accounts Receivable SLS, Inc. (denominated in $) $ TNT, Ltd. Accounts Payable AGT SDS, Ltd. (denominated in $) $ LINK TO TEXT Attempts: 2 of 5 used (b) Compute the transaction gain or loss on each unsettled receivable and payable that would be reported in the income statement prepared for the year ended December 31. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Receivable Payable SLS, Inc. TNT, Ltd. AGT SDS, Ltd. Transaction gain (loss) $ $ $ $
Agentel Corporation is a U.S.-based importing-exporting company. The company entered into the following transactions during the month of November. Nov. 6 Purchased merchandise from AGT, a Swiss firm, for 540,000 francs. 5 Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $200,000. 18 Sold merchandise to TNT, Ltd., a British firm, for 140,000 pounds. 20 Purchased merchandise from SDS, Ltd., a British firm, for $170,000. All the transactions were unsettled at December 31, Agentel’s fiscal year-end. Spot rates are as follows: Currency Date Franc Real Pound November 6 $0.490 $0.412 $1.520 November 15 0.487 0.409 1.509 November 18 0.476 0.414 1.506 November 20 0.468 0.405 1.498 December 31 0.460 0.398 1.482 (a) Your answer is correct. Compute the amount that Agentel would report for each unsettled receivable and payable in its balance sheet prepared at December 31. Amount Accounts Receivable SLS, Inc. (denominated in $) $ TNT, Ltd. Accounts Payable AGT SDS, Ltd. (denominated in $) $ LINK TO TEXT Attempts: 2 of 5 used (b) Compute the transaction gain or loss on each unsettled receivable and payable that would be reported in the income statement prepared for the year ended December 31. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Receivable Payable SLS, Inc. TNT, Ltd. AGT SDS, Ltd. Transaction gain (loss) $ $ $ $
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 11P
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