Explain how each of the following transactions generates a credit and a debit in the American...

Explain how each of the following transactions generates a credit and a debit in the American balance of payments accounts and described (BRIEFLY) how each entry would be classified:
1. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank.
2. The Korean government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy Korean currency from its citizens
3. A tourist from Detroit buys a meal at a restaurant in Lyons, France, paying with a traveler’s check
4. A California winemaker contributes a case of cabernet sauvignon for a London based win tasting.
5. A US owned factory in Britain uses local earnings to buy additional machinery

Expert Solution

A) Debit in BOP account.

This is because when money goes out of the country whether by check or any other means. It is debited. Debit means goes out credit means comes in.

Credit is in the form of shares. Shares are coming in the country which is a part of current account.

B) debit in the form of Korean currency.

Credit in the form of Dollars.

C) Debit.

This is because person from detroit that is in US pays in france. This means money is going out of the country. So there will be a debit entry.

Credit is in the form of meal which shows credit in current account meaning goods are credited.

D) Debit.

This is because contribution is done in which money is going out of the country.

Credit is the wine testing which is a part of current account.

E) Debit

This is because money is going out to buy machinery.

Credit is in current account as machinery is being purchased which will further lead to earn more money.

Rahul Sunny answered 2 years ago

How to make a General Journal with the following transactions: date, account title and explanations, debit,credit...

How to make a General Journal with the following transactions: date, account title and explanations, debit,credit Business ABC Solutions went into effect December 1, 2017 as a sole proprietorship. These transactions take place during the month of December: Dec. 1 To start the business, Andy deposits $60,000 into the ABC Solution’s bank account. Dec. 1 ABC Solutions purchased a office building for $250,000, paying $20,000 cash, and assuming a mortgage with a bank for the rest. The Mortgage is for...

1. Identify whether each of the following is a debit or a credit in the country...

1. Identify whether each of the following is a debit or a credit in the country of Freedonia’s BOP and indicate where the item would be classified. a. Freedonian firms export $250 million worth of goods. b. Freedonian citizen’s purchase $50 million worth of tickets on US Airways flights. c. A Freedonian firm purchases a shoe factory in Mexico for $30 million. d. Freedonia receives $5 million in foreign aid from the United States. e. Freedonian citizens deposit $15 million...

Identify the debit or credit for the following transactions. Remember, every single transaction has at least...

Identify the debit or credit for the following transactions. Remember, every single transaction has at least one debit and at least one credit. However, I just want you to identify what is requested. 1,Sold merchandise on account. Identify the sale entry debit 2 Wages were accrued but not paid at December 31, year-end. Identify the adjusting entry credit. 3. Adjusting entry to record depreciation of office equipment. Identify the credit. 4. Fees were earned but not billed at December 31,...

Journalize the following accounting transactions with the correct Debit and Correct Credit entry. - borrowed money...

Journalize the following accounting transactions with the correct Debit and Correct Credit entry. - borrowed money from the bank - paid off the loan from the bank - bought equipment on account -paid off the equipment bought on account - Mr. Tucker invested money in his sole - proprietorship - paid the insurance bill - bought supplies for cash -made cash sales for the day - made sales on account - collected money from sales on account

What would be the journal entry for the following transactions (include account, amount, debit or credit):...

What would be the journal entry for the following transactions (include account, amount, debit or credit): Jan 7 Issued common stock for $50,000 Feb 14 Purchased supplies on account for $3,750 Feb 20 Paid the invoice for Supplies that were purchased on Feb 14th Apr 3 Issued additional common stock for $30,000. Apr 8 Purchased merchandise of 6,000 yo-yos at $2.00 per yo-yo on account, terms 1/10, n/30. May 8 Paid the invoice of April 8 May 11 Sold 2,000...

For each of the following accounts, signify DEBIT or CREDIT to indicate the normal balance of...

For each of the following accounts, signify DEBIT or CREDIT to indicate the normal balance of the account. 1 Accounts recievable Multiple Choice Answer Options: 2 Credit card expense a. Credit 3 bad debt expense b. Debit 4 allowance for doubtful debts 5 Notes receivable (due in 180 days) 6 interest revenue 7 depreciation expense 8 building 9 equipment 10 accumulated depreciation 11 Loss of disposal of equipment 12 Gain on disposal of equipment 13 Sales revenue 14 Patent 15...

DEBIT AND CREDIT ANALYSIS: Complete the following statements using either “debit” or “Credit” The cash account...

DEBIT AND CREDIT ANALYSIS: Complete the following statements using either “debit” or “Credit” The cash account is increased with a ___________Debit________ The common stock account is increased with a ____________Credit________ The equipment account is increased with a ____________________ The cash account is decreased with a ____________________ The accounts payable account is increased with a ___________Credit_________ The revenue account Delivery Fees is increased with a ____________________ The asset account Accounts...

American Laser, Inc., reported the following account balances on January 1. Debit Credit Accounts Receivable $...

American Laser, Inc., reported the following account balances on January 1. Debit Credit Accounts Receivable $ 5,000 Accumulated Depreciation $ 30,000 Additional Paid-in Capital 122,000 Allowance for Doubtful Accounts 2,000 Bonds Payable 0 Buildings 279,000 Cash 18,000 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 18,000 Retained Earnings 120,000 Treasury Stock 0 TOTALS $ 302,000 $ 302,000 The company entered into the following transactions during the year. Jan. 15 Issued 21,000 shares of $1 par common stock...

Analyze these transactions ( say which account to debit and which account to credit with the...

Analyze these transactions ( say which account to debit and which account to credit with the amount) ⃝ Funds Received Form #FR-11-10 Dated January 27/xx Record $161,000 in pledged from sponsor forms submitted by participants to sponsor the participants. ⃝ Cash Purchase Invoice #DP-39168 Dated January 27/xx From Domino Pizza, $723.20 for pizza and soft drinks for volunteers. Invoice paid from Cash on Hand. ⃝ Cheque Copy #171 Dated January 27/xx To Leanna Alexander, $2,000...

throughout the list, label each as either debit, credit or no entry for the following prompt....

throughout the list, label each as either debit, credit or no entry for the following prompt. "A hardware distributor ships an order of nails on account to Naperville True Value Store. Match the accounts to the correct debit and credit entries." 1. cost of goods sold 2. inventory 3. revenue 4. accounts receivable 5. freight 6. discounts, returns and allowances 7. accounts payable 8. cash

Question

Explain how each of the following transactions generates a credit and a debit in the American...

Solutions

Expert Solution

Related Solutions