Chapter 11 Problems

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

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

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)...
View Full Document

This note was uploaded on 03/10/2010 for the course ACC ACC703 taught by Professor Taylor during the Spring '10 term at Ryerson.

Page1 / 7

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

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online