Wayne Limited purchased a capital asset from France for 500,000. The asset was delivered to Wayne Limited
Question:
Wayne Limited purchased a capital asset from France for €500,000. The asset was delivered to Wayne Limited on November 1, 2005. Wayne Limited agreed to pay the supplier in full on February 1, 2006. The payment was made as agreed.
The exchange rates were as follows:
Required:
a. Prepare journal entries for 2005 and 2006 to record the above information.
b. Assume that Wayne Limited hedged the obligation on November 1, 2005.
The forward rate was C$1.00 = €0.64. Prepare the appropriate journal entries for 2005 and 2006.
Transcribed Image Text:
November 1, 2005 December 31, 2005 February 1, 2006 C$1.00 0.70 C$1.00-0.60 C$1.00-0.62
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
To answer parts a and b of your question well first need to calculate the equivalent Canadian Dollar C amounts based on the exchange rates provided on the respective dates and then prepare the require...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting Theory questions
-
Salluit Limited purchased a capital asset from a French company for 200,000. The asset was delivered to Salluit Limited on November 1, 20X7. Salluit Limited agreed to pay the supplier in full on...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Describe the four stages in a digital forensic investigation. How does the Fourth Amendment and Fifth Amendment apply to digital forensics investigations? Provide at least one example of how the...
-
a) If the block is at rest (and the only forces acting on the block are the force due to gravity and the normal force from the table), what is the magnitude of the force due to friction? b) Suppose...
-
A carpenter builds an exterior house wall with a layer of wood 3.0 cm thick on the outside and a layer of Styrofoam insulation 2.2 cm thick on the inside wall surface. The wood has k = 0.080W/mK and...
-
Exxon Mobil Corp. has paid out the following dividends in the past 12 years: Year Quarterly dividend Annual dividend 2019 0.87 3.48 2018 0.82 3.28 2017 0.77 3.08 2016 0.75 3.00 2015 0.73 2.92 2014...
-
Which of the following is true? a. ERS systems use disbursement vouchers. b. Setting up petty cash as an imprest fund violates segregation of duties. c. The EOQ formula is used to identify the...
-
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears on the following page: Required: 1. Compute...
-
A real estate investor is considering the purchase of a four - unit office building and has the following information. The purchase price is $ 9 1 4 , 7 4 9 with $ 8 , 7 8 6 in acquisition costs. The...
-
On May 5, 2005, Roy Corp. purchased inventory from a Japanese supplier, and gave the supplier a 90-day note for 20,000,000. On the same date, Roy entered a forward contract with its bank to receive...
-
At the beginning of 2004, Domo Industries Ltd. obtained a four-year loan of US$200,000 from a bank in New York City. At the time of the loan, the U.S. dollar was worth C$1.20. At the end of 2004, the...
-
In a credit sales and cash receipts system flowchart symbol X could represent a. Auditors test data. b. Remittance advices from customers. c. Error reports. d. Credit authorization forms.
-
Bouchard Company's current earnings per share are $ 6.50; five years ago it was $ 4.42. The company paid 40% of profit as dividends and the shares worth $ 36 each. Calculate the historical rate of...
-
Renting an ApartmentMonthly income$5,840Living expenses$3,900Assets$13,500Liabilities$4,800Emergency fund$1,000 Pam Jenkins recently married Josh Brock. Pam continues to work as a sales...
-
1) A thoughtful/detailed analysis of the macroeconomic conditions surrounding Philippines and its currency. 2) A detailed analysis and discussion whether or not the currency is currently overvalued,...
-
At the beginning of the current period, a company carried 750 units of its product with a unit cost of $29. A summary of purchases during the current period follows. Also, during the current period,...
-
Philippines Peso (the currency of Philippines) 1) Provide a plan of action that could be implemented to mitigate the impact of the currency movements, i.e., how you should to some firm approach...
-
Key figures for Polaris and Arctic Cat follow. Required 1. Compute common- size percents for each of the companies using the data provided. (Round percents to one decimal.) 2. Which company retains a...
-
What is EBIT/eps analysis? What information does it provide managers?
-
Partners Maness and Joiner have decided to liquidate their business. The ledger shows the following account balances: Maness and Joiner share profits and losses in an 8:2 ratio. During the first...
-
How would the decision to dispose of a segment of operations using a split-off rather than a spinoff impact the financial statements of the company making the distribution?
-
Describe each of the three legal forms that a business combination might take.
-
What is the expected return based on the table below? Outcome Probability Return Recession 40% -35% Expansion 25% 20% Boom 35% 55%
-
A Treasury bond with 10 years to maturity is currently quoted at 114:10. The bond has a coupon rate of 10.3 percent. What is the yield value of a 32nd for this bond? Note: Do not round intermediate...
-
Crystal Electronics is a mid-sized electronics manufacturer located in Johannesburg. The company CEO inherited the company. When it was started 70 years ago, the company originally repaired radios...
Study smarter with the SolutionInn App