Question
In: Accounting
1) An entity in the United Kingdom, sells goods to a Swiss entity on May 1,...
1) An entity in the United Kingdom, sells goods to a Swiss entity on May 1, 2012 for the amount of 750,000 Swiss francs (SWFr). The payment is received August 1, 2012. The rate of Exchange from May 1, 2012 £1 = SWFr 3.5544. 1. August 2012, was £ 1 = SWRf 3.7081.
The accounting year of the company closes on September 30, 2012 and the currency in which the financial statements are reported in British pounds.
a)Record this transaction in the books of the company.
b)Indicates the amount of the balance of the accounts receivable and if there is gain or loss on that account as a result of the exchange rate.
2) The company Rose bought an asset by the amount of €12000 a foreign company on January 3, 2012. By that date the exchange rate between the two currencies involved was 1FC (foreign currency) = € 2. The currency in which Rose keeps its accounts is in foreign currency. In the statement of financial situation of June 30, 2012, the foreign currency exchange rate was 1FC = €1.50.
Displays entries that Rose must do to register the initial transaction and those required for the date of the balance sheet (in terms of gain or loss as a result of the exchange rate).
Solutions
ekkarill92 answered 1 year agoRelated Solutions
1) An entity in the United Kingdom, sells goods to a Swiss entity on May 1,...
1) An entity in the United Kingdom, sells goods to a Swiss
entity on May 1, 2012 for the amount of 750,000 Swiss francs
(SWFr). The payment is received August 1, 2012. The rate of
Exchange from May 1, 2012 £1 = SWFr 3.5544. 1. August 2012, was £ 1
= SWRf 3.7081.
The accounting year of the company closes on September 30, 2012
and the currency in which the financial statements are reported in
British pounds.
Record this transaction...
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