Required A Required B Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUS of the Japanese company (yen) and the Brazilian customer (real). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations and final answers to nearest whole number. No 1 Date May 01 General Journal Inventory (or Purchases) Accounts payable (*) Show less▲ Debit Credit 6,200 6,200 2 June 20 Accounts payable (¥) × 6,200 Foreign currency transaction loss 443 × Cash 6,643 3 June 20 Cash 4 June 20 Cash 5 July 01 Accounts receivable (BRL) Sales 6 August 10 Cash Accounts receivable (BRL) Foreign currency transaction gain 7 August 10 Cash Accounts receivable (BRL) < Required A Required B > 6,643 885,714 > 10,200 10,200 × 11,220 10,200 1,020 51,000 51,000 ×

1.)

Harris Incorporated had the following transactions:

1. On May 1, Harris purchased parts from a Japanese company for a U.S. dollar–equivalent value of $6,200 to be paid on June 20. The exchange rates were

   May 1	1 yen = $0.0070
   June 20	1 yen = 0.0075

2. On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,200, to be received on August 10. Brazil’s local currency unit is the real. The exchange rates were

   July 1	1 real = $0.20
   August 10	1 real = 0.22

Required:

1. -
2. Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUs of the Japanese company (yen) and the Brazilian customer (real).

For Part B:

• 1
  Record the foreign purchase denominated in Japanese yen.
   
• 2
  Record the revaluation of the foreign currency payable to the U.S. dollar equivalent value.
   
• 3
  Record the purchase of Japanese yen to settle the account payable at the June 20 spot rate.
   
• 4
  Record the settlement of the payable denominated in Japanese yen.
   
• 5
  Record the foreign sales denominated in Brazilian reals.
   
• 6
  Record the revaluation of foreign currency payable to the U.S. dollar equivalent value.
   
• 7
  Record the receipt of Brazilian reals in the settlement of the receivables.