topic journal entries for an account receivable denominated in swiss francs us fluct 4314328

topic journal entries for an account receivable denominated in swiss francs us fluct 4314328

Topic: Journal Entries for an Account Receivable Denominated in Swiss Francs ($US Fluctuates).

LO: 1

5.Assume that your company sells products to a customer located in Switzerland on November 20. The invoice specifies that payment is to be made on February 20 in Swiss Francs (CHF) in the amount of CHF 4,000. Your company operates on a calendar year basis. Assume the following exchange rates:

November 20

$1.18: 1CHF

December 31

$1.05: 1CHF

February 20

$1.12: 1CHF

 

Required: 

a.Prepare the journal entries to record the sale.

b.Prepare the journal entry as of Dec. 31.

c.Prepare the journal entry as of Feb. 20.

 

Topic: Journal Entries for an Account Payable Denominated in Swiss Francs ($US Fluctuates).

LO: 1

6.Assume that your company purchases product from a supplier located in Switzerland on November 20. The invoice specifies that payment is to be made on February 20 in Swiss Francs (CHF) in the amount of CHF 4,000. Your company operates on a calendar year basis. Assume the following exchange rates:

November 20

$1.18: 1CHF

December 31

$1.05: 1CHF

February 20

$1.12: 1CHF

 

Required: 

a.Prepare the journal entries to record the purchase (assume perpetual inventory accounting).

b.Prepare the journal entry as of Dec. 31.

c.Prepare the journal entry as of Feb. 20.

 

 

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts