Question

Assume that Ace Company engaged in a purchase or sale transaction on December 1, 20X1. The resulting payable or receivable was due on January 31, 20X2, and must be settled in a foreign currency unit (FC). Use the pick lists associated with the boxed areas below to select the amount and nature of the transaction, and the exchange rate applicable to each relevant date. The journal entries will automatically complete, based on your choices. Be sure to review them closely to understand the intrinsic logic. What is the value of the transaction in FC units? Do you wish to review the entries for a purchase of sale? How much, in dollars, is the FC unit on December 1? How much, in dollars, is the FC unit on December 31? How much, in dollars, is the FC unit on January 31? GENERAL JOURNAL Date Accounts Debit Credit 12/1/X1 - - GENERAL JOURNAL Date Accounts Debit Credit 12/31/X1 - - To record exchange rate change GENERAL JOURNAL Date Accounts Debit Credit 1/31/X2 - - 0 - - 0 To record settlement of FC transaction

Assume that Ace Company engaged in a purchase or sale transaction on December 1, 20X1. The resulting payable or receivable was due on January 31, 20X2, and must be settled in a foreign currency unit (FC).

Use the pick lists associated with the boxed areas below to select the amount and nature of the transaction, and the exchange rate applicable to each relevant date. The journal entries will automatically complete, based on your choices. Be sure to review them closely to understand the intrinsic logic.                  
                  
What is the value of the transaction in FC units?                  
                  
Do you wish to review the entries for a purchase of sale?                  
                  
How much, in dollars, is the FC unit on December 1?                  
                  
How much, in dollars, is the FC unit on December 31?                  
                  
How much, in dollars, is the FC unit on January 31?                  
                  
GENERAL JOURNAL                  
Date   Accounts   Debit      Credit  
12/1/X1       -          
               -   
                   
                  
                  
GENERAL JOURNAL                  
Date   Accounts   Debit      Credit  
12/31/X1       -          
               -   
   To record exchange rate change              
                  
                  
GENERAL JOURNAL                  
Date   Accounts   Debit      Credit  
1/31/X2       -          
        - 0        -   
               - 0   
    To record settlement of FC transaction              
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  
                  

Answer 1