Chapter 11 Problems

# Chapter 11 Problems - Chapter 11 Problems Problem 6(a(i...

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Unformatted text preview: Chapter 11 Problems Problem 6 (a) (i) December 1, Year 3 Inventory 444,600 Accounts payable (DM) 444,600 (DM600,000 × .741) December 3, Year 3 Due from bank (DM) 468,600 Payable to bank 468,600 (DM600,000 × .781) (ii) December 31, Year 3 Exchange loss 9,600 Accounts payable (DM) 9,600 (DM600,000 × [.757 - .741]) Due from bank (DM) 3,000 Exchange gain 3,000 (DM600,000 × [.786 - .781]) (iii) April 1, Year 4 Exchange loss 27,000 Accounts payable (DM) 27,000 (DM600,000 × [.802 - .757]) Due from bank (DM) 9,600 Exchange gain 9,600 (DM600,000 × [.802 - .786]) Payable to bank 468,600 Cash 468,600 (DM600,000 × .781) Cash (DM) 481,200 Due from bank (DM) 481,200 (DM600,000 × .802) Accounts payable (DM) 481,200 Cash (DM) 481,200 (b) Hamilton Importing Corp. Balance Sheet as at December 31, Year 3 Assets Forward contract (1) 3,000 Liabilities Accounts payable 454,200 (1) Due from bank 471,600 Less: payable to bank 468,600 Forward contract 3,000 Problem 7 Part a Part b (i) Machinery – cost when delivered (500,000 x 0.164) 82,000 82,000 Less: exchange adjustment on forward contract to date of delivery [500,000 x (0.168 – 0.165)] (1,500) (750) Net cost of machinery 80,500 81,250 (ii)...
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## This note was uploaded on 03/10/2010 for the course ACC ACC703 taught by Professor Taylor during the Spring '10 term at Ryerson.

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Chapter 11 Problems - Chapter 11 Problems Problem 6(a(i...

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