Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A review of Ace Industries, a U.S. corporation, shows the following balances in accounts receivable and accounts payable detail at September 30, 2011, their fiscal

A review of Ace Industries, a U.S. corporation, shows the following balances in accounts receivable and accounts payable detail at September 30, 2011, their fiscal year end.

ACCOUNTS RECEIVABLE

Receivables denominated in U.S. dollar $426,000

Receivable denominated in 40,000 Australian dollar 43,000

Receivable denominated in 70,000 Canadian dollar 71,750

$ 540,750

ACCOUNTS PAYABLE

Payables denominated in U.S. dollar $ 107,000

Payable denominated in 50,000 Canadian dollar 51,250

Payable denominated in 200,000 Hong Kong dollar 26,500

$ 184,750

As Ace prepared to close their books, they noted that the September 30 exchange rates for the Australian dollar, Canadian dollar and Hong Kong dollar were $1.0366, $1.0301 and $0.1284, respectively.

1) Calculate the amount of accounts receivable and accounts payable that will be included on the September 30, 2011 balance sheet.

2) Calculate the exchange gain/(loss) to be included in the 2011 financial statements. Indicate whether it is an exchange gain or loss.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475

More Books

Students also viewed these Accounting questions

Question

4. Write an effective feasibility report?

Answered: 1 week ago

Question

How can you defend against SQL injection attacks?

Answered: 1 week ago