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Problem 5 Shelton Corporation is an international dealer in jewelry and engages in numerous import and...

Problem 5

Shelton Corporation is an international dealer in jewelry and engages in numerous import and export activities. Shelton’s receivables and payables in foreign currency units before year end adjustments on December 31, 2017 are summarized as follows:

Foreign          Currency       Rate on Date             Current RateRate at Settlement

Currency       Units              of Transaction                      on 12/31/17   in 2018

Accounts Receivable

British Pds    100,000                       1.5300                         $1.6600                       $  1.595

Euros             90,000             .8600                           .8400                    .790            

Krona             120,000                       .6600                           .6400                   .685

Yen                 3,200,000        .0066                           .0076                     .0078

Accounts Payable

Canadian $    150,000                       .7700                           .6900                 .723

Pesos              220,000                       .1520                           .1350                  .138

Yen                 4,500,000        .0071                           .0076                 .0080

REQUIRED:

  1. Determine the amount at which the receivables and payables should be reported in Shelton’s December 31, 2017 balance sheet.
  1. Calculate gains and losses that should appear in Shelton’s 2017 and 2018 income statements.

Solutions

Expert Solution

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ekkarill92 answered 1 year ago
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