The 2 pianos purchased by Jitan Events Co. in Nablus, are shipped by Royal Jordanian to Amman air port from Hansson Co. Hanover Germany. The bill of lading is termed "$4550 FOB Hanover" Who is responsible for the pianos and paying the freight (shipping) expenses
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The 2 pianos purchased by Jitan Events Co. in Nablus, are shipped by Royal Jordanian to Amman air port from Hansson Co. Hanover Germany. The bill of lading is termed "$4550 FOB Hanover" Who is responsible for the pianos and paying the freight (shipping) expenses
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- You are a manufacturer of auto parts locate in Fort Lauderdale, Florida, USA. You have entered into an international sales contract to sell a shipment of parts to a purchaser in São Paulo, Brazil. You have extended credit to the importer using a D/A documentary collection. Terms: Delivery: CIF Santos, Brazil (INCOTERMS 2010) Time of Payment: Sixty days from the date documents are stamped “Shipped on board” Draft Amount: $2,175,000.00 Remitting Bank: Bank of America - Fort Lauderdale, Florida, USA Collecting Bank: Banco do Brazil - São Paulo, Brazil What could you do to get paid sooner than sixty days?Gwyn Tring, trading as Clickety Clocks, imports and resells clocks. He pays for the costs of delivering the clocks from his supplier in Switzerland to his shop in Wales. He resells the clocks to other traders throughout the country, paying the costs of carriage for the consignments from his business premises to his customers. On 1 July 20X5, he had clocks in inventory valued at $17,000. During the year to 30 June 20X6 he purchased more clocks at a cost of $75,000. Carriage inwards amounted to $2,000. Sales for the year were $162,100. Other expenses of the business amounted to $56,000 excluding carriage outwards which cost $2,500. Gwyn Tring took drawings of $20,000 from the business during the course of the year. The value of the goods in inventory at the year end was $15,400. Required Prepare the income statement of Clickety Clocks for the year ended 30 June 20X6.Determine the buyer’s and seller’s responsibility in a commercial transaction. Exquisite Exports inc. based in St-Jérôme, QC sells products to Total S.A. in Paris, France, under the following terms: Terms of sale: CPT, port of Le Havre, Incoterms 2020 20 wooden pallets with Maple syrup loaded in on 40-ft ocean container Terms of delivery: ocean freight Terms of payment: open account, net 60 days Who selects the freight forwarder and pays the ocean freight charges?
- 4. FANIS trades used cars. He bought from the BMW dealership in Germany 50 cars XI 1800cc for 1.750.000€, in total. The cost of transporting the cars from Germany to customs was 25000€. For the customs clearance of the cars, including the customs broker's fee, the amount of € 250,000 was paid to customs. BMW, based on an agreement, made a 5% discount due to quantity but also issued an invoice of € 50,000 for late payment. Five cars were sold for €42000 every 15 days after the balance sheet expired. FANIS gave a €1000 commission to a local dealer to mediate the sale of the cars through his clientele. It is requested that is the cost of ownership and what is the net realizable value of the inventory. What is the final price of its valuation?Wang Foods Ltd has been operating for a number of years as a producer of canned vegetables. Wang Foods imports most of its vegetables from Thailand and Vietnam. All overseas shipments to Wang Foods are invoiced and require settlement in US dollars. Furthermore, Wang Foods is required to pay for freight and insurance costs. The insurance covers the period from the day the goods are loaded onto the ship (i.e. Wang Foods assumes ownership of the goods on the day the goods are loaded onto ships in the various Asian ports from where the produce is shipped) until the day they arrive in Wang Foods’ warehouses in Australia. All shipments arrive in Australia within a 21-day period after loading onto a ship. All overseas suppliers are settled 30 days after the date of shipment. Overseas suppliers now represent 70 per cent of accounts payable. Local and overseas suppliers are maintained in separate subsidiary ledgers within the accounting system. The audit partner has identified…Wang Foods Ltd has been operating for a number of years as a producer of canned vegetables. Wang Foods imports most of its vegetables from Thailand and Vietnam. All overseas shipments to Wang Foods are invoiced and require settlement in US dollars. Furthermore, Wang Foods is required to pay for freight and insurance costs. The insurance covers the period from the day the goods are loaded onto the ship (i.e. Wang Foods assumes ownership of the goods on the day the goods are loaded onto ships in the various Asian ports from where the produce is shipped) until the day they arrive in Wang Foods’ warehouses in Australia. All shipments arrive in Australia within a 21-day period after loading onto a ship. All overseas suppliers are settled 30 days after the date of shipment. Overseas suppliers now represent 70 per cent of accounts payable. Local and overseas suppliers are maintained in separate subsidiary ledgers within the accounting system. The audit partner has identified…
- Wang Foods Ltd has been operating for a number of years as a producer of canned vegetables. Wang Foods imports most of its vegetables from Thailand and Vietnam. All overseas shipments to Wang Foods are invoiced and require settlement in US dollars. Furthermore, Wang Foods is required to pay for freight and insurance costs. The insurance covers the period from the day the goods are loaded onto the ship (i.e. Wang Foods assumes ownership of the goods on the day the goods are loaded onto ships in the various Asian ports from where the produce is shipped) until the day they arrive in Wang Foods’ warehouses in Australia. All shipments arrive in Australia within a 21-day period after loading onto a ship. All overseas suppliers are settled 30 days after the date of shipment. Overseas suppliers now represent 70 per cent of accounts payable. Local and overseas suppliers are maintained in separate subsidiary ledgers within the accounting system. The audit partner has identified…Vision 2020 Ltd is a China-based company that manufactures Samsung flat screens of all sizes. In January 2019 it consigned 2,000 television sets (49 inch) to its agent Best electronics ltd in Uganda at a cost of Shs 1,500,000 each. Vision 2020 Ltd incurred the following expenditure on sending the consignment: Freight Shs. 12,500,000 and Insurance Shs. 4,600,000. Best electronics Ltd received the delivery of 1800 flat screens. An account sale dated 30th Match 2019 showed that 1700 television sets were sold for Shs. 1,700,000 each and Best electronics Ltd incurred Shs 15,000,000 on carriage. Best electronics Ltd was entitled to commission of 8% on the sales effected by her. Best electronics Ltd incurred expenses amounting to Shs 2,000,000 for repairing the damaged television sets that were remaining in the stock. Vision 2020 Ltd lodged a claim with the insurance company but the insurance company refused to pay due to a default in the policy. Required:Show the Consignment Account and the…Williams Corporation imports, from a number of German manufacturers, large machining equipment used in the tooling industry. On June 1, the company received delivery of a piece of machinery with a cost of 450,000 euros when the spot rate was 1 euro equals $1.370. Williams had already paid 50,000 euros, when the spot rate was 1 euro equals $1.350, to the German company at the time of placing the order, and the balance of the invoice was due in 60 days after delivery. On June 15, the company became concerned that the dollar would weaken relative to the euro and proceeded to purchase an option to buy euros on July 31 at a strike price of 1 euro equals $1.375. The hedge was designated as a fair value hedge. At the time of purchase, the out-of-the-money option had a value of $1,400 and a value of $2,600 at June 30. Euro spot rates are as follows: 1 euro =June 15 . . . . . . . . . . . . . . . . . . . . . . . . . .…
- Vision 2020 Ltd is a China-based company that manufactures Samsung flat screens of all sizes. In January 2019 it consigned 2,000 television sets (49 inch) to its agent Best electronics ltd in Uganda at a cost of Shs 1,500,000 each. Vision 2020 Ltd incurred the following expenditure on sending the consignment: Freight Shs. 12,500,000 and Insurance Shs. 4,600,000. Best electronics Ltd received the delivery of 1800 flat screens. An account sale dated 30th Match 2019 showed that 1700 television sets were sold for Shs. 1,700,000 each and Best electronics Ltd incurred Shs 15,000,000 on carriage. Best electronics Ltd was entitled to commission of 8% on the sales effected by her. Best electronics Ltd incurred expenses amounting to Shs 2,000,000 for repairing the damaged television sets that were remaining in the stock. Vision 2020 Ltd lodged a claim with the insurance company but the insurance company refused to pay due to a default in the policy. Required:Show the Consignment Account and the…Galicia, a A5 Wagyu supplier, sold 100 40x2 containers of A5 Wagyu to Andalusia who promised to pay once he has sold all the wagyu. Andalusia meantime delivered the goods to Balearic, a warehouseman, who issued a warehouse receipt. Without the knowledge of Galicia and Balearic, Andalusia negotiated the receipt to Basque who acquired it in good faith and for value. Basque then claimed the goods from Balearic, who released them. After the wagyu were loaded on a ship bound for Manila, Galicia invokes his right to stop the goods in transit due to his unpaid lien. Who has a better right to the rice? a. Basque, since he has superior rights as a purchaser for value and in good faith. b. Basque, regardless of whether or not he is a purchaser for value and in good faith. c. Galicia, since as an unpaid seller, he has the right of stoppage in transitu. d. Balearic, since it appears that the warehouse charges have not been paid.On November 1, 20x1, Pain Co. received a sale order for equipment from Gain Co., a foreign entity, for 300,000 foreign currency units (FCU) when the local currency unit (LCU) equivalent was 96,000 LCUs. Pain shipped the equipment on December 1, 20x1, and billed the customer for 300,000 FCUS when the local currency unit equivalent was 100,000 LCUS. On December 31, 20x1, the local currency unit equivalent of the 300,000 FCUS was 103,000LCUS. Pain received the payment on January 6, 20x2 when the local currency unit equivalent of the 300,000 FCUS was 105,000 LCUS. Requirement: Provide the journal entries in 20x1 and 20x2