Patriot Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for

Question:

Patriot Company, a U.S. with customers in several foreign countries, had the following selected transactions for 2009 and 2010.
2009
Apr. 8 Sold merchandise to Salinas & Sons of Mexico for $27,456 cash. The for pesos is $0.0932 on this day.
July 21 Sold merchandise on credit to Sumito Corp. in Japan. The price of 2.7 million yen is to be paid 120 days from the date of sale. The for yen is $0.0082 on this day.
Oct. 14 Sold merchandise for 18,000 pounds to Smithers Ltd. of Great Britain, payment in full to be received in 90 days. The for pounds is $2.0330 on this day.
Nov. 18 Received Sumito’s payment in yen for its July 21 purchase and immediately exchanged the yen for dollars. The for yen is $0.0079 on this day.
Dec. 20 Sold merchandise for 20,000 ringgits to Hamid Albar of Malaysia, payment in full to be received in 30 days. On this day, the for ringgits is $0.2963.
Dec. 31 Recorded adjusting entries to recognize exchange gains or losses on Patriot’s annual financial statements. Rates for exchanging foreign currencies on this day follow.
Pesos (Mexico) . . . . . . . . . . . $0.0937
Yen (Japan) . . . . . . . . . . . . . . 0.0075
Pounds (Britain) . . . . . . . . . . 2.0345
Ringgits (Malaysia) . . . . . . . . .0.2949
2010
Jan. 12 Received full payment in pounds from Smithers for the October 14 sale and immediately exchanged the pounds for dollars. The for pounds is $2.0355 on this day.
Jan. 19 Received Hamid Albar’s full payment in ringgits for the December 20 sale and immediately exchanged the ringgits for dollars. The for ringgits is $0.2936 on this day.
Required
1. Prepare journal entries for the Patriot transactions and adjusting entries (round amounts to the nearest dollar).
2. Compute the foreign exchange gain or loss to be reported on Patriot’s 2009 income statement.
Analysis Component
3. What actions might Patriot consider to reduce its risk of foreign exchange gains or losses?
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...