Question

In: Accounting

During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered...

During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions:

Dec. 10 Sold seven office computers to a company located in Colombia for 8,778,000 pesos. On this date, the spot rate was 380 pesos per U.S. dollar.

Dec. 12 Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 510,000 Taiwan dollars.

The direct exchange spot rate on this date was $0.039.

Prepare journal entries necessary to adjust the accounts as of December 31. Assume that on December 31 the direct exchange rates were as follows:

Colombia peso $0.00259
Taiwan dollar $0.0350

Solutions

Expert Solution

ekkarill92 answered 1 month ago
Next > < Previous

Related Solutions

5) During December of the current year, Exide company based in America, entered into the following...
5) During December of the current year, Exide company based in America, entered into the following transactions; Dec 10 Sold machinery to company located in Colombia for 6,500,000 pesos. On this date, the spot rate was 365 pesos per U.S. Dollar. Dec 12 Purchased Machine parts from a company domiciled in Japan. The contract was denominated in 600,000 Japan yen. The direct exchange spot rate on this date was $.0392. Required: A) Prepare journal entries to record the transactions above...
Assume during the quarter ending December 31 of the current year, Cox Security Systems had 13...
Assume during the quarter ending December 31 of the current year, Cox Security Systems had 13 weekly paydays and three monthly paydays. The names of the employees of Cox Security Systems and their regular salaries are shown in the following payroll register. Note that Hall and Short are paid monthly on the last payday, while all others are paid weekly. Employee Name Marital Status No. of W/H Allowances Regular Earnings Hall, Michael S 3 $5,000*    Short, Joy T. S 0...
The following selected transactions were completed by Air Systems Company during January of the current year....
The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $21,600 of merchandise on account, FOB shipping point, terms 2/15, n/30. 5 Paid freight of $450 on the January 2 purchase. 6 Returned $4,400 of the merchandise purchased on January 2. 13 Sold merchandise on account, $6,500, FOB destination, 1/10, n/30. The cost of merchandise sold was $4,700. 15 Paid freight of $150...
Macondo, Inc. is a wholesaler located in Aguadilla. During its current fiscal year, ended December 31,...
Macondo, Inc. is a wholesaler located in Aguadilla. During its current fiscal year, ended December 31, 2019, Macondo Inc. completed the following selected transactions: Feb. 3 Purchased 2,500 shares of its own common stock at $26, recording the stock at cost. (Prior to the purchase, there were 40,000 shares of $20 par common stock outstanding. May 1 Declared a semiannual dividend of $1 on the 10,000 shares of preferred stock a $.30 dividend on the common stock to stockholders of...
Macondo, Inc. is a wholesaler located in Aguadilla. During its current fiscal year, ended December 31,...
Macondo, Inc. is a wholesaler located in Aguadilla. During its current fiscal year, ended December 31, 2019, Macondo Inc. completed the following selected transactions: Feb. 3 Purchased 2,500 shares of its own common stock at $26, recording the stock at cost. (Prior to the purchase, there were 40,000 shares of $20 par common stock outstanding. May 1 Declared a semiannual dividend of $1 on the 10,000 shares of preferred stock a $.30 dividend on the common stock to stockholders of...
The following transactions were completed by The Peeking Company during the current fiscal year ended December...
The following transactions were completed by The Peeking Company during the current fiscal year ended December 31: Mar. 30           Received 60% of the $24,000 balance owed by Geeking, Inc., and wrote off the remainder as uncollectible. June 29            Wrote off $6,500 balance owed by Seeking Inc., which has filed bankruptcy. Sept. 20           Reinstated the account of Leaking Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $12,500 cash in full payment of the...
The following transactions were completed by The Irvine Company during the current fiscal year ended December...
The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,350 cash in full payment of Seth’s account. Aug. 13 Wrote off the $6,400 balance owed by Kat...
On December 1, 2017, Ringling Company (a U.S.-based company) entered into a three-month forward contract to...
On December 1, 2017, Ringling Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,010,000 pesos on March 1, 2018. The following U.S. dollar per peso exchange rates apply: Date Spot Rate Forward Rate (to March 1, 2018) December 1, 2017 $ 0.009 $ 0.012 December 31, 2017 0.011 0.014 March 1, 2018 0.015 N/A Ringling's incremental borrowing rate is 9 percent. The present value factor for two months at an annual interest rate of 9 percent...
Franklin, Inc. owns 80% of Prevatt Company. During the current year, a portion of the investment...
Franklin, Inc. owns 80% of Prevatt Company. During the current year, a portion of the investment in Prevatt is sold. Prior to recording the sale, Franklin adjusts the book value of its investment. What is the purpose of the adjustment? (must be 400 words)
The following transactions were completed by Irvine Company during the current fiscal year ended December 31
Instructions The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 40% of the $ 17,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible.May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $ 7,405 cash in full payment of Seth's account.Aug. 13 Wrote off the $ 6,460 balance owed by Kat Tracks...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT