Charles & Sons, a U.S. computer supplies firm, had the following transactions with foreign companies during December 2001.

a. Goldstar Co., Ltd., a South Korea-based firm, sold 5,000 computer hard drives to Charles & Sons for 100,000 won per drive on December 12, 2001. Charles & Sons paid the bill on January 13, 2002.

b. Charles & Sons sold 2,000 computer hard drives to a Swiss firm, Lockner Inc., on December 21, 2001. Lockner Inc. agreed to pay \($135\) per hard drive. Payment was received by Charles & Sons on February 4, 2002.

c. Charles & Sons sold 2,400 computer hard drives to Geopacific, Inc., a company with headquarters in Canada, on December 28, 2001. Geopacific was billed 148 Canadian dollars per drive. Payment was received on January' 10, 2002.

d. Charles & Sons received 1,000 printers from Printco, a Japanese company, on December 28, 2001. Printco billed Charles & Sons 45,000 yen per printer.

Charles & Sons paid the liability- on January 14, 2002.

Exchange rates for the above transactions are as follows:

Instructions: 

Prepare the journal entries necessary for Charles & Sons to record each of the above transactions for the following: (1) date of the original transaction, (2) balance sheet date, and (3) date of payment or receipt of cash.

Transcribed Image Text:

U.S. dollar value of 1 unit of foreign currency: As of Date of Sale or Purchase As of Balance Sheet Date South Korean won. Swiss franc. $0.00103 $0.00112 0.670 0.632 Canadian dollar Japanese yen. 0.910 0.935 0.0075 0.0069 As of Date of Payment or Receipt $0.00115 0.655 0.905 0.0073