Blue Corporation, a U.S. manufacturer, sold goods to their customer in Hungary on December
Blue Corporation, a U.S. manufacturer, sold goods to their customer in Hungary on December 12, 2011 for 6,000,000 Hungarian forints. The customer agreed to pay in Hungarian forints in 30 days. When the customer wired the foreign currency to Blue on January 11, 2012, Blue held them in their bank account until January 15 before selling them and converting them to U.S. dollars. The following exchange rates apply:
Dec 12, 2011$0.0055
Dec 31, 2011$0.0049
Jan 11, 2012$0.0063
Jan 15, 2012$0.0059
Record the journal entries that Blue would need related to the dates listed above. If no entry is required, state "no entry."
18) Plymouth Corporation (a U.S. company) began operations on September 1, 2011, when the owner borrowed $250,000 to establish the business. Plymouth then had the following import and export transactions with unaffiliated Chinese companies:
September 6, 2011Bought material inventory for 100,000 yuan on account. Invoice denominated in yuan.
September 18, 2011Sold 80% of inventory acquired on 9/6/11 for 110,000 yuan on account. Invoice denominated in yuan.
October 5, 2011Acquired and paid the 100,000 yuan owed to the Chinese supplier
October 18, 2011Collected the 110,000 yuan from the Chinese customer and immediately converted them into U.S. dollars
The following exchange rates apply:
September 6$0.1544 = 1 yuan
September 18$0.1607 = 1 yuan
September 30$0.1591 = 1 yuan
October 5$0.1578 = 1 yuan
October 18$0.1593 = 1 yuan
1. What were Sales in the September month-end income statement?
2. What was the COGS associated with these sales?
3. What is the Accounts Receivable balance in the balance sheet at September 30, 2011?
4. What is the Inventory balance in the balance sheet at September 30, 2011?
5. What is the Exchange gain or loss that will be reported for the month of September?