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Chapter 11 Homework Solutions

# Chapter 11 Homework Solutions - E11-4 FC Units(Euros...

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E11-4 FC Units (Euros) FCT Loss X6 145,000 [7] 2,500 [4] 72,500 [8] 2,500 72,500 FCT Loss X7 10,000 [5] A/R (Euros) 150,000 [1] 250,000 x 0.6 10,000 5,000 [3] 250,000 x (0.62-0.60) 10,000 [5] 250,000 x (0.62-0.58) FCT Gain X6 145,000 [7] 250,000 x 0.58 5,000 [3] 5,000 A/P (Euros) 75,000 [2] 125,000 x 0.6 FCT Gain X7 2,500 [4] 125,000 x (0.62-0.60) 5,000 [6] 5,000 [6] 125,000 x (0.62-0.58) 72,500 [8] 125,000 x 0.58 5,000 E11-5 A/R A/P FCT Loss FCT Gain Case 1 None 40,000 x 0.40 = None 40k x (0.45-0.40) = 16,000 2,000 Case 2 20,000 x 1.90 = None None 20k x (1.90-1.80) = 38,000 2,000 Case 3 None 30,000 x 0.90 = 30k x (0.90-0.80) = None 27,000 3,000 Case 4 2.5M x 0.0025 = None 2.5Mx(.003-.0025)= None 6,250 1,250 E11-6 Denominated in: U.S. Dollars Local currency 5/1 Inventory 8,400 8,400 Accounts payable 8,400 8,400 6/20 FCT Loss 600 Accounts payable 600 Accounts payable 8,400 9,000 Cash 8,400 Foreign currency units (yen) 9,000 7/1 Accounts receivable 10,000 10,000 Sales 10,000 10,000 8/10 Accounts receivable 1,000 FCT Gain 1,000

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Cash 10,000 Foreign currency units (real) 11,000 Accounts receivable 10,000 11,000 E11-7 a. Swiss francs (given) b. 12/1 Inventory 10,500 [15,000 sfr x 0.7]

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