Question
Beta Co purchased 4,250 shares of Company W on 1 September 20x2. The share price was USD12.50 on the date of purchase. The functional currency
Beta Co purchased 4,250 shares of Company W on 1 September 20x2. The share price was USD12.50 on the date of purchase.
The functional currency of company B was SGD. The equity purchase was classified as trading.
The share price was USD5.50 on 31 December 20x2. The USD/SGD spot rates are as follows:
|
| USD/SGD spot rates |
| 1-Sep-20x2 | 1.12 |
| 31-Dec-20x2 | 1.04 |
What is Beta's journal entry on 31 Dec 20x2?
a.
Dr. Exchange Loss $24,957
Cr. Investment in Trading Securities $24,957
b.
Dr. Exchange Loss $35,190
Cr. Investment in Trading Securities $35,190
c.
Dr. Loss in FV of Trading Securities - Income $35,190
Cr. Investment in Trading Securities $35,190
d.
Dr. Loss in FV of Trading Securities - Income $24,957
Cr. Investment in Trading Securities $24,957
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AML Auditing Understanding Foreign Exchange What Every AML KYC Auditor Should Know
Authors: Bob Walsh
1st Edition
1539576248, 978-1539576242
