A company has an account payable to a U.S. company, a supplier of inventory, in the amount

Question:

A company has an account payable to a U.S. company, a supplier of inventory, in the amount of US$150,000. The payable was incurred when the exchange rate was US$1 = Cdn$.75. At yearend, the rate is $.72.

Required:
1. What amount of inventory is recorded?
2. What amount of exchange gain or loss will the company report for the year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting Volume 2

ISBN: 9781260881240

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

See More Books

Question Posted: Apr 10, 2023 06:07 AM

See More Questions

Simulation results are available for two mutually exclusive alternatives. A large number of trials have been run with a computer, with the results shown in Figure P12-22. Discuss the issues that may...
Jorge Gomez is a single taxpayer His SSN is 412345670 and he lives at 5037 Circle Court Crestview IL 60543 His W2 for 2016 shows gross wages of 92600 with 5741 of social security and 1343 of Medicare...
A company has an account receivable from a U.S. customer, for US$100,000. The receivable arose when the exchange rate was US$1 = Cdn$1.08. At year-end, the rate is US$I = S1.01. What amount of total...
Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be: A. 88.2. B....
An unknown binary compound containing hydrogen (XH n ) has a density as a gas that is 2.393 times that of oxygen gas under the same conditions. When 2.23 10 -2 mole of this compound reacts with...
The nature and content of note disclosures relating to Accounting changes. Business combinations. Contingencies and commitments. Events subsequent to the balance sheet date. Impact of inflation....
How are risk-adjusted discount rates used to incorporate project risk into the capital budgeting decision process? AppendixLO1
The following section is taken from Koster Corp.s balance sheet at December 31, 2011. Current liabilities Interest payable.. $ 72,000 Long-term liabilities Bonds payable, 9%, due January 1,...
question in the picture. 2) please calculate all the ration mentioned in the lecture for following company MGC Corp's Balance Sheet Cash 50,000 Notes Payable 105,000 Marketable Securities 75,000 long...
Blue Ltd. engages in transactions involving foreign currencies, namely the Australian dollar and U.S. dollar. Blue Ltd. engaged in the following transactions during 20X9: 1. Purchased inventory on 1...
Hendrie reported opening balances as at 1 June 20X8: The company had the following transactions in June 20X8: a. Collected $708,000 of GST on sales to customers. b. Recorded the bimonthly payroll,...
Professional musicians do everything they can to keep the show going, particularly for tours that are scheduled months in advance. However, illness and other unforeseeable circumstances can force an...
Write a java program that contain two overloaded methods that accepts two numbers or two characters representing a range example (11, 37) or (c, w) inputted by the user. The method generates a random...
Maggie could not conceive a child using natural means, so she sought out a woman who would donate an egg to be surgically implanted in Maggie. Which of the following items are deductible by Maggie in...
M corporation is subject to tax only in state b state b law provides for the use of federal taxable income before net operating loss and special deductions as the starting point for computing state...
Use Routh Criteria to determine the values of K needed for the system represented by the Characteristic Equation to be stable. (1 + K)s + (2K + 3)s + 2 3K = 0 Obtain the root locus plot for the...
Q7 a) Two forces equal to 2P and P act on a particle. If the first be doubled and second is increased by 12N, the direction of resultant remains unaltered. Find the value of P (5)
Requests for service in a queuing model follow a Poisson distribution with a mean of five per unit time. (a) What is the probability that the time until the first request is less than 4 minutes? (b)...
In Exercises 105108, evaluate each expression without using a calculator. log(ln e)
Allen Corporation reports the following amounts in its first three years of operations. The difference between taxable income and accounting income is due to one reversing difference. The tax rate is...
Hang Technologies Inc. held a portfolio of shares and bonds that it accounted for using the fair value through other comprehensive income model at December 31, 2020. This was the first year that Hang...
Mazur Corp. follows IFRS and began operations in 2020 and reported accounting income of $275,000 for the year. Mazur's CCA exceeded its book depreciation by $40,000. Mazur's tax rate for 2020 and...
44. Dryer Companys policy is to keep 25% of the next month's sales in ending inventory. If Dryer meets its ending inventory policy at the end of April and sales are expected to be 24,000 units in May...
What general conclusions can you draw about your companys liquidity, solvency and productivity based on your ratio calculations. Working Capital 2017 = $9,994 M 2016 = $10,673 M Current Ratio 2017 =...
Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain...

A company has an account payable to a U.S. company, a supplier of inventory, in the amount

Question:

Step by Step Answer:

1 The Canadian equivalent of the payable when it is first recorded is US 150000 x C...View the full answer

Intermediate Accounting Volume 2

Students also viewed these Business questions