On September 1, 2020, Bain Corp. receivedan order for equipment from a foreign customerfor 300,000local currency units (LCU) when the peso equivalent was P96,000, Bain shipped the equipment on October 15,2020, and billed the customer for 300,000 LCU when thepeso equivalentwas P100,000. Brain received the1.customer's remittancein fullon November15, 2020, and sold the 300,000 LCU for P105,000, In its incometatement for the year ended December 31, 2020, Brainshould repornt a foreign exchange transaction gain of?2.On November 15, 2020, Celt, Inc, a Philppine company located in Baguio City, ordered merchandise FOBshipping point from a Geman Company for 200,000 marks. The merchandise as shipped and invoiced to CeltonDecember 10, 2009. Celt paidtheinvoioce onJanuary 1, 2021. The spotrates for marks on the respective dates areas followsNovember 15, 2020December 10, 2020December 31, 2020P22.495522.487522.4675January 10, 202122.4475In Celt's December 31, 2020 income statement, the foreign exchange gain is?3.The White Co. has the Philippine pesos as its funtional currency. On October 16, 2020, White orderedsome inventory from a foreign supplier and agreed a purchase price of 160,000 local currency units (LCU). Theinventory was received on November 15, 2020.At December 31, 2020, the inventory remained on hand and the trade payable balance for the inventonypurchase remained outstanding. The supplier was paid on January 27, 2021 and the inventory was soid onJanuary 31, 2010.The following information about exchange ratesis available:October 16,1.00 = 2.60LCU1.00 - 2.50LCU2020November 15, 2020December 31, 20201.00 = 2.40LCUJanuary 27, 20211.00 - 2.25 LCUAccording to LAS 21, The Effects of Changes in Foreign Exchange Rates, at what amount shouldthe trade payablebalance due tothe supplier bepresented inthestatement offinandial position at December 31,2020? 4.On October 1, 2020, a local importer contracted to purchase foreign goods requiring payment of100,000 German marks one month after their receipt at the local importer's business place. Title to the goodspassed on the date of shipment on December 1, 2020. On December 31, 2020, the goods were still in transit.The following exchange rates were madeavailable:October 1, 202022.00December 1, 202020.00December 31, 202026.00How should the exchange fluctuation in 2009 to be accounted by this local importer?5.Certain balance sheet accounts of a foreign subsidiary of Rowan, Inc. at December 31,2020, have beentranslated into Philippine pesos as follows:Translated atCurrent rateHistorical rateNote receivable, long-term240,000200,000Prepaid rent85,00080,000Patent150,000170,000What total amount should be included in Rowan's December 31, 2021, consolidated balancesheet for the aboveaccounts using the translation method?

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On September 1, 2020, Bain Corp. received an order for equipmentfrom a foreign cuatomerfor 300,000 local currency units (LCU) when the peso equivalent was P96000. Bain shipped the equipment on October 15, 2020, and billed the customer for 300,000 LCU when thepeso equlvalentwas P100,000, Brain received the customer's remittance in full on November16, 2020, and sold the 300,000 LCU for P105,000, In its income statement for the year ended December 31, 2020, Brainshould report a foreign exchange transaction gain of? 1.

On September 1, 2020, Bain Corp. received an order for equipmentfrom a foreign cuatomerfor 300,000 local currency units (LCU) when the peso equivalent was P96000. Bain shipped the equipment on October 15, 2020, and billed the customer for 300,000 LCU when thepeso equlvalentwas P100,000, Brain received the customer's remittance in full on November16, 2020, and sold the 300,000 LCU for P105,000, In its income statement for the year ended December 31, 2020, Brainshould report a foreign exchange transaction gain of? 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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