Question
Desi of New York sells its products to customers in the United States and the United Kingdom. On December 16, 2011, Desi sold merchandise on
Desi of New York sells its products to customers in the United States and the United Kingdom. On December 16, 2011, Desi sold merchandise on credit to Bronson Ltd. of London at a price of 17,000 pounds. The exchange rate on that day for 1 was $1.5238. On December 31, 2011, when Desi prepared its financial statements, the rate was 1 for $1.4990. Bronson paid its bill in full on January 15, 2012, at which time the exchange rate was 1 for $1.5156. Desi immediately exchanged the 17,000 pounds for U.S. dollars.
Prepare Desi's journal entries on December 16, December 31, and January 15.(Round your intermediate calculations and finalanswers to the nearest dollar amount. Omit the "$" sign in your response.) |
Date | General Journal | Debit | Credit |
Dec. 16, 2011 | (Click to select)Foreign exchange gainAccounts receivable-Bronson Ltd.CashWages expenseSalesWages payableAccounts payableForeign exchange loss | ||
(Click to select)Wages payableForeign exchange lossCashWages expenseForeign exchange gainAccounts receivable-Bronson Ltd.Accounts payableSales | |||
Dec. 31, 2011 | (Click to select)Foreign exchange lossWages payableSalesCashForeign exchange gainAccounts payableAccounts receivable-Bronson Ltd.Wages expense | ||
(Click to select)Accounts payableCashForeign exchange lossForeign exchange gainWages expenseSalesAccounts receivable-Bronson Ltd.Wages payable | |||
Jan. 15, 2012 | (Click to select)Accounts receivable-Bronson Ltd.Accounts payableForeign exchange gainSalesCashForeign exchange lossWages payableWarranty expense | ||
(Click to select)Foreign exchange gainCashWages expenseAccounts receivable-Bronson Ltd.Accounts payableWages payableSalesForeign exchange loss | |||
(Click to select)Wages payableSalesWages expenseForeign exchange lossAccounts payableForeign exchange gainAccounts receivable-Bronson Ltd.Cash |
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