During December 2019 of the current year, Wiley Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 12: Purchased computer chips from a Taiwan company. Contract was denominated in 125,000 Taiwan dollars. Direct exchange rate on this date was $.0391. Inventory received 12/12/2019 and 125,000 Taiwan dollars paid on 1/10/2020 Assume that on December 31 the direct exchange rates was Taiwan dollar $.0351. Assume that the direct exchange rate on the settlement date was Taiwan dollar $.0398. a) Prepare the journal entry for purchase on the books of Wiley Systems, Inc. b) Prepare journal entry necessary to adjust the account as of December 31 c) Prepare journal entry to record settlement of account on January 10. Prepare journal entry to record settlement of account on January 10.
During December 2019 of the current year, Wiley Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 12: Purchased computer chips from a Taiwan company. Contract was denominated in 125,000 Taiwan dollars. Direct exchange rate on this date was $.0391. Inventory received 12/12/2019 and 125,000 Taiwan dollars paid on 1/10/2020 Assume that on December 31 the direct exchange rates was Taiwan dollar $.0351. Assume that the direct exchange rate on the settlement date was Taiwan dollar $.0398. a) Prepare the journal entry for purchase on the books of Wiley Systems, Inc. b) Prepare journal entry necessary to adjust the account as of December 31 c) Prepare journal entry to record settlement of account on January 10. Prepare journal entry to record settlement of account on January 10.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 1: During December 2019 of the current year, Wiley Systems, Inc., a company based in Seattle, Washington, entered into the following transactions:
Dec. 12: Purchased computer chips from a Taiwan company. Contract was denominated in 125,000 Taiwan dollars. Direct exchange rate on this date was $.0391.
Inventory received 12/12/2019 and 125,000 Taiwan dollars paid on 1/10/2020
Assume that on December 31 the direct exchange rates was Taiwan dollar $.0351.
Assume that the direct exchange rate on the settlement date was Taiwan dollar $.0398.
- a) Prepare the
journal entry for purchase on the books of Wiley Systems, Inc. - b) Prepare journal entry necessary to adjust the account as of December 31
- c) Prepare journal entry to record settlement of account on January 10. Prepare journal entry to record settlement of account on January 10.
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