FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter 15A, Problem 7PSB
1.
To determine
Introduction:
To record: The journal entries.
2.
To determine
Introduction: Journal entry is the first step of accounting to record day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business.
The foreign exchange gain or loss.
3.
To determine
Introduction: Journal entry is the first step of accounting to record day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business.
The action required.
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June 8 30 day forward rate $1.15
June 30 Spot rate $1.14
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June 7
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many of these transactions in the currency of the customer. Following are four such transactions made in
the last accounting period, plus the direct exchange rates for each date:
Country Amount Currency
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sale
Spot rate
at collection
Argentina . . . . . . . . . . . . . . . . . . . . . . 250,000 Peso $0.056 $0.049
Canada . . . . . . . . . . . . . . . . . . . . . . . . 400,000 Dollar 0.732 0.713
India . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 Rupee 0.016 0.018
South Africa . . . . . . . . . . . . . . . . . . . . 100,000 Rand 0.074 0.077
Required
Prepare the journal entries made by Daisy Brands to record the above sale and collection transactions
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