ACC401- Module 6- Exam 3- Lisa Byrd.xlsx - Lisa Byrd ACC-401 Module 6 Exam 3 Question 1 On Napole Corporation a French company ordered merchandise

# ACC401- Module 6- Exam 3- Lisa Byrd.xlsx - Lisa Byrd...

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Lisa Byrd ACC-401 Module 6 Exam 3 Question 1 Purchase value on November 15, 2014 (20,000 * \$1.30) \$26,000 Payment value on December 10, 2014 (20,000 * \$1.28) \$25,600 Foreign currency gain on December 31, 2014 \$400 Journal Entries: Dates Accounts & Explanations Post Ref Debit Credit 11/15/2014 Merchandise Purchased \$26,000 Accounts Payable \$26,000 12/10/2014 Accounts Payable \$26,000 Cash \$25,600 Foreign Currency (Gain) \$400 On October 15, 2014, Napole Corporation, a French company, ordered merchandise listed on the internet for 20 Adams Corporation, a U.S. corporation. The euro rate was \$1.20 (U.S. dollars) on October 15. On November 15, shipped the goods and billed Napole the purchase price of 20,000 euro when the euro rate was \$1.30. Napole p December 10, 2014, and Adams immediately exchanged the 20,000 euro for US dollars when the euro rate was 10, 2014. Compute the foreign currency gain or loss on the December 31, 2014 financial statements of Adams and show t entries. (To record merchandise purchased) (To record cash paid to accounts payable)
0,000 euro from 2014, Adams paid the bill on \$1.28 on December the related journal
Question 2 ACCOUNTS RECEIVABLE \$426,000 \$43,000 \$71,750 \$540,750 ACCOUNTS PAYABLE \$107,000 \$51,250 \$26,500 \$184,750 Exchange rate for Accounts Receivable: Exchange Gain/Loss f Australian Dollar = \$43,000 = \$1.075 Austrailian Dollar = \$40,000 = Canadian Dollar = \$71,750 = \$1.025 Canadian Dollar = 70,000 = Total Loss for Account Exchange rate for Accounts Payable: Canadian Dollar = \$51,250 = \$1.025 Exchange Gain/Loss f 50,000 Canadian Dollar = Hong Kong Dollar = \$26,500 = \$0.1325 = 200,000 Hong Kong Dollar = = Total Gain for Account Total Exchange Loss = Accounts Receivable and Accounts Payable that will be included on the balance sheet: Accounts Receivable: Receivables denominated in U.S. dollars \$426,000 Receivables denominated in Australian dollars (40,000*\$1.0366) \$41,464 Receivables denominated in Canadian dollars (70,000*\$1.0301) \$72,107 Total Accounts Receivables \$539,571 Accounts Payable: Payables denominated in U.S. dollars \$107,000 Payables denominated in Canadian dollars (50,000*\$1.0301) \$51,505 A review of Ace Industries, a U.S. corporation, shows the following balances in accounts receivable and a

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• Fall '14
• Accounting, United States dollar, dollar