Foreign Currency Translation
Toyah Corporation purchases merchandise on October 1 from a supplier in the nation
of Marfaland. The national currency of Marfaland is the jal. The purchase contract calls
for Toyah Corporation to pay 100,000 jals on October 31. The value of the jal in U.S.
dollars on the pertinent dates is as follows:
Required:
Prepare the necessary general journal entries on the books of the Toyah Corporation.
Foreign Currency Translation for a Credit Sale
Palatka Company sells merchandise on July 1 to a customer in the nation of Ratonia.
The national currency of Ratonia is the boca. The sales contract calls for the customer
to pay Palatka 60,000 bocas on July 31. The value of the boca in U.S. dollars on the
pertinent dates is as follows:
Required:
Prepare the necessary general journal entries on the books of the Pal-atka Company.
Credit Purchase with Interim Adjustment
Dalies Corporation purchases merchandise from a supplier located in the nation of
Mesilla on December 15. The national currency of Mesilla is the belen. The contract
calls for Dalies Corporation to pay 80,000 belens on January 15. Dalies Corporation uses the calendar year for its fiscal year.
The value of the belen in U.S. dollars on the pertinent dates is as follows:
Required:
Prepare the necessary general journal entries on the books of the Dal-ies Corporation.
Credit Sale with Interim Adjustment
Island Company sells merchandise on December 20 to a customer in the nation of
Cancunia. The national currency of Cancunia is the aku-mal. The sales contract calls
for the customer to pay Island 50,000 ak-umals on January 20. The value of the
akumal in U.S. dollars on the pertinent dates is as follows:
Required:
Prepare the necessary general journal entries on the books of the Island Company.