B-15.14 Problem

B-15.14 Problem - Terms of sale provide for settlement in...

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B-15.14 Universal Instruments is based in the USA and prepares its financial statements in dollars. The company uses a perpetual inventory system. On December 5, 20X5, Universal had two separate purchase transactions from suppliers in Europe. The first transaction was for $100,000. Terms of sale provide for settlement in dollars. The account was paid in full on January 11, 20X6. The second transaction was for 100,000€.
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Unformatted text preview: Terms of sale provide for settlement in euros. The account was paid in full on January 11, 20X6. The exchange rate of dollars for euros fluctuated as follows: December 5, 20X5: $1.47 per euro December 31, 20X5: $1.46 per euro January 11, 20X6: $1.49 per euro Prepare journal entries showing the inventory purchase, year-end adjustment (if necessary), and final settlement for each of these two transactions....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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