Question
Crabby Industries, a U.S. corporation, purchased inventory from a company in Sweden on November 18, 2011 when the Swedish krona was trading at 1 krona
Crabby Industries, a U.S. corporation, purchased inventory from a company in Sweden on November 18, 2011 when the Swedish krona was trading at 1 krona = $0.161. The transaction was for 600,000 krona, and was to be paid in krona in 90 days. Crabby closed their books at December 31 for financial reporting purposes when the krona was trading at $0.167. On February 16, 2012, Crabby paid the invoice when the krona was trading at $0.156.
Required: Show the journal entries recorded by Crabby on November 18, 2011, December 31, 2011, and February 16, 2012.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started