The table shows an abridged form of the Canada's balance of payments accounts. Place the various internationaltransactions in the corresponding categories. Please note that not all blanks need to be filled and not all transactions needto be placed.Transfers (A)Factor income (B)Paymentsto foreignersPaymentsfrom foreignersAnswer Banka Canadian company makes a payment to aGerman IT consultancythe Bank of Canada buys $2 billion in eurosa Canadian car company buys out a rivaldomestic manufacturerSales and purchases ofgoods and services (C)Current account(A + B + C)Private sales andpurchases of assests (D)Official asset sales andpurchases (E)Financial account(D + E)an English company purchases a Canadianconfectionary manufacturerthe profits of a Japanese camera-manufacturingplant operating in Canada.the wages of a Canadian permanently workingin Germanyan Australian company buys steel from Canadathe wages of a Canadian working athree-month contract in Australiaa Canadian buys $15,000 of stock in aSpanish companya Canadian working in Saudi Arabia sends$10,000 to his mother

Here is the BOP of Canada: These do not belong in the BOP:1. Canadian car company buying out…

Answered: The table shows an abridged form of the…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter24: Recording International And Internet Sales

Section: Chapter Questions

Problem 1ANFS

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Corporation Y, which is located in the USA, sold merchandise to Poland on credit in a transaction that was settled in Polish Zlotis and will be paid early next year. And you are preparing your financial statements for the current year and the staff in the accounting department is unclear on which method to use to present the balances in dollars. What procedure must be followed to determine the amount to be reported in the financial statement? Remeasurement Currency transfer Coversion Translation
Balance-of-payments double-entry bookkeeping. Show how the following transactions should be recorded in the U.S. balance of payments using a double-entry accounting system: ■ Newmont Mining—a U.S. mining concern—exports $400 million worth of copper to China and is paid in the form of a payment drawn on a U.S. bank. ■ DuPont expands its plastics manufacturing capacity in its Polish plant by investing $250 million financed by a dollar bond issue in London (United Kingdom). ■ The central bank of the People’s Bank of China purchases $2.5 billion in the foreign exchange market to slow down the appreciation of the renmimbi. The dollars are invested in five-year U.S. Treasury bonds. ■ The U.S. government provides food assistance to Sudanese refugees in the amount of $25 million worth of flour.
XYZ is a German Company that has its foreign affiliation in Oman as Watiyyah Inc. The functional currency of Oman is OMR. The reporting currency for XYZ is EUR. The company shows the below accounts: Cash (OMR 15000), Capital (OMR 75000), Accounts Receivable (OMR 30000), Long Term Debt (OMR 10000), Accounts payable (OMR 25000), Land and Building (OMR 25000), Inventory (OMR 40000), Prepare the balance sheet of Watiyyah Inc. Translate the above balance sheet into EUR using the temporal method using the below exchange rates: The current exchange rate is OMR 0.4350/EUR The historical exchange rate is OMR 0.4060/EUR
Explain how each of the following transactions enters the Nigerian balance ofpayments accounts. Indicate the specific component of the BOP account that isaffected by each transaction. Discuss only the transactions described. Do not beconcerned with possible offsetting transactions.a) The Nigerian government sells 20m barrels of oil to Ghana.b) The Central Bank of Nigeria sells dollars to and buys Niara from the USFederal Reserve.c) Guaranty Trust Bank Plc (Nigeria) receives interest on loans it has made toGhanaian companies.d) A Nigerian Bank borrows from a Ghanaian bank.e) A Nigerian oil company buys insurance from a British insurance company toinsure its oil rigs in the Niger Delta.
1. On November 1, 2020, an entity acquired on account goods from a foreign supplier at a cost of $3,000. The accounts payable are paid on January 30, 2021. On December 1, 2020, an entity sold on account goods to a foreign customer at a selling price of $2,500. The accounts receivable is collected on February 28, 2021. The entity is operating in Philippine economy wherein the functional currency is the Philippine Peso. The following exchange rates are provided Buying spot rate Selling spot rate November 1, 2020 P40 P42 December 1, 2020 39 40 December 31, 45 45.5 2020 January 30, 2021 45.5 46 February 28, 2021 46 46.5 What is the carrying amount of monetary asset on December 31, 2020?
Which of the following items is a "debit" item in a country's balance-of payments accounts? a. exports of services b. increased holdings of domestic bonds by foreigners c. exports of merchandise d. an increase in a domestic citizen's bank aaccount in a foreign bank
A multinational Corporation based in the United States of America has subsidiaries in the UK, Canada, and France. As at December 31, 2020, inter-company indebtedness were as follows:Debtors Creditors Amount CurrencyUK Canada 1,500,000 Can$UK France 600,000 Euro (€)France Canada 800,000 Can$Canada UK 94,000 Sterling (£)Canada France 400,000 Euro (€)It is the policy company’s policy to net off inter-company balances to the greatest extent possible. The central treasury department is to use the following exchange rates for these purposes:US$1 =Can$1.237/€0.8620/£0.729Required:Calculate the net payment to be made between the subsidiaries after netting off inter-company balances,by presenting the payoff in a matrix/table format.
Which is true of FedGlobalSM ACH Payments offered by Federal Reserve Bank Services? A fixed-to-fixed transfer method allows converted check payments to be settled during the current processing day The fixed-to-variable option allows funds from accounts at a U.S. depository institution to be retrieved by any receiver at a participating bank location FedGlobal provides a framework for cross-border debit payments between 35 countries An account-to-account transfer is used to distribute ACH credit payments between deposit accounts
Identify each transaction by whether it belongs in the US current account or financial account: The central bank of China collects interest payments on US government securities that it had previously bought. O Financial Account O Current Account
Your business subsidiary in Brunei reports their financial information with their local currency (Brunei Dollar)(BND). The information is reported in Table 1. Translate the financial information of your Brunei subsidiary using the Current/Non-Current method, and Monetary / Non-Monetary Method. The Current/Spot Rate is BND 1 equal to MYR 3. The historical rate is BND 1 equal to MYR 3.5 Table 1 Financial Information from Subsidiary in Brunei Cash $2,500 Deposit in Bank $1,050 Inventory $5,000 Account Receivables $3,500 Building $51,000 Equipment $38,000 Intangible Assets $10,300 Account Payable $4,800 Short-term Bank Loans $15,000 Long Term Debt $56,000 Sales $70,000 COGS $78,321
Identify whether each of the following is a debit or a credit in Mexico’s BOP and indicate where the item would be classified.( Specifically indicate the account and the item as credit or debit) d) Mexico receives $10 million in foreign aid from the United States. e) Mexican citizens deposit $5 million in Citibank account in New York. f) Mexico imports $110 million worth of goods. g) Mexican firms borrow $45 million by issuing bonds in the United States. h) S. firms earn (and repatriate) $5 million in profits from operations in Mexico. h) The Mexican Central bank buys $15 million in U.S. Treasury bills. Suppose that these are all of the entries in Mexico’s BOP table. State if Mexico is net lender or borrower vis- a -vis the rest of the world? Calculate the value of errors and omissions. Thanks.
Balance of payments accounting. For the following international transactions, identify the balance of payments accounts and whether the transaction would generate an inflow or an outflow of foreign exchange for the two countries involved. ■ The Colombian drug cartel delivers 100 kg of heroin to its distributor in Miami, who pays $25 million in cash.

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