IFRS - Accounting Questions Write journal entries for the following series of foreign currency transactions: a....

IFRS - Accounting Questions

Write journal entries for the following series of foreign currency transactions:

a. On September 18, 2003, when the yen was valued at 225 to the dollar, a U.S. firm purchased transistors from a Japanese firm, and agreed to pay 6,750,000 yen on November 15, 2003.

b. On October 26, 2003, the same firm purchased leather goods from a Mexican company, agreeing to pay 4 million pesos on December 15, 2003. On October 26, 2003, one peso was worth $.004.

c. On November 24, 2003, the U.S. firm sold ?375,000 worth of cotton to a British firm when the pound was worth $1.45. Payment was to be received on January 15, 2004.

d. The following exchange rates prevailed on the dates below: __________________________________________________________________

November 15, 2003……………………………………………….$1.00 = 200 yen

December 15, 2003……………………………………………… $1.00 = 275 pesos

December 31, 2003……………………………………….………..$1.48 = 1 pound

January 15, 2004………………………………………..........……$1.42 = 1 pound

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