ABC Inc, a US Company, bought machine parts from a German company on December 1, 20X1, for Euro 2,000, when the spot rate was $0,4895. ABC's year end was December 31, when the spot rate was $0.4845. On January 20, 20X2, ABC paid the liability with Euro 2,000 acquired at a rate of $0.4945. Required: 1. Prepare journal entries related to ABC's foreign currency transactions on December 1, 20X1, December 31, 20X1 and January 20, 20X2. 2. What amount of ABC's income statement would report foreign currency exchange gain or loss for the year ended December 31, 20X1 and 20X2?

ABC Inc, a US Company, bought machine parts from a German company on December 1,201, for Euro 2,000 , when the spot rate was $0,4895. ABC's year end was December 31 , when the spot rate was $0.4845. On January 20,202,ABC paid the liability with Euro 2,000 acquired at a rate of $0.4945. Required: 1. Prepare journal entries related to ABC 's foreign currency transactions on December 1,201, December 31,201 and January 20,202. 2. What amount of ABC 's income statement would report foreign currency exchange gain or loss for the year ended December 31,201 and 202? Question 2 On March 1, 20x8, Wilson Corporation sold goods for a U.S. dollar equivalent of $10,000 to a Thai company. The transaction is denominated in Thai baht. The payment is received on May 10 . The exchange rates were: March1:1baht=$0.032May10:1baht=0.035 Required: Prepare journal entries related to Wilson 's foreign currency transactions on March 1 and March 10 , 208