Accounting-7795285 - Solution: Computation of the following...

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Question: New Colony Corporation (a U.S. company) made a sale to a foreign customer on September 15, 2004, for 100,000 foreign currency units (FCU). Payment was received on October 15, 2004. The following exchange rates for 1 FCU apply: September 15, 2004 $0.40 September 30, 2004 $0.42 October 15, 2004 $0.37 Prepare all journal entries for New Colony in connection with this sale, assuming that the company closes its books on September 30 to prepare interim financial statements.
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Unformatted text preview: Solution: Computation of the following Sep. 15 th , 2004: Sales: 100,000 FCU $40,000 Accounts receivable: +100,000 FCU Sep. 30 th , 2004: Net Sales: 100,000 FCU $42,000 Other income (expense) Foreign currency: $2,000 Accounts receivable: 100,000 FCU Oct. 15 th , 2004: Accounts receivable: $37,000 Other income (expense) Foreign currency: $3,000...
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