Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Cornerstones Of Cost Accounting

Authors: Don Hansen, Maryanne M. Mowen

1st Edition

053873678X, 978-0538736787

More Books

Students also viewed these Accounting questions