On April 1, A. C. Corporation, a calendar-year U.S. electronics manufacturer, buys 32.5 million yen worth of

Question:

On April 1, A. C. a calendar-year U.S. electronics manufacturer, buys 32.5 million yen worth of computer chips from the Hidachi Company paying 10 percent down, the balance to be paid in 3 months. Interest at 8 percent per annum is payable on the unpaid foreign currency balance. The U.S. dollar/ Japanese yen on April 1 was $1.00 = \93.6250; on July 1 it was $1.00 =\93.5283.

Required:
Prepare dated journal entries in U.S. dollars to record the incurrence and settlement of this foreign currency transaction assuming:
a. A. C. adopts a single-transaction perspective, and
b. it employs a two-transactions perspective.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...