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Diamond, Inc., is a U.S. company that manufactures exercise machines and distributes several lines of imported bicycles. Selected transactions, for the year of 2007, of

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Diamond, Inc., is a U.S. company that manufactures exercise machines and distributes several lines of imported bicycles. Selected transactions, for the year of 2007, of the company were as follows: Oct. 4 Purchased, on account, manufacturing equipment from Rhine Mfg.Co., a German company. The purchase price was 400,000, due in 60 days. Current exchange rate was $0.7020 per euro. Oct 18 Purchased, on account, 2,500 racing bicycles from Ninja Cycles Inc., a Japanese company, at a total price of 60,000,000. Payment was due in 90 days. Current exchange rate was $0.0110 per yen. (Diamond uses perpetual inventory system) Oct 30 Sold, on account, 1,200 racing bicycles purchased an Oct. 18 to Tiger Inc., a Swiss retail chain at a price of SF450 per unit. The total amount was due in 6 months. Current exchange rate was $0.62 per Swiss franc. Nov15 Purchased, on account, 1,000 touring bicycles from Royal Lion Ltd., a British company, at a total price of 192,500. Payment was due in 30 days. Current exchange rate was $1.65 per British pound Dec 3 Issued a check to first bank for the US dollar-equivalent of 400,000 in payment of the Ps Dec 3 Issued a check to first bank for the U.S. dollar-equivalent of 400,000 in payment of the account payable to Rhine Mfg. Co. Current exchange rate was $0.7110 per euro. Dec 15 Issued a check to first bank for the U.S. dollar-equivalent of 192,500 in payment of the account payable to Royal Lion Ltd. Current exchange rate was $1.60 per British pound. Instructions: a. Prepare entries in general journal of Diamond to record the preceding transactions b. Prepare the December 31 adjusting entries relating to accounts payable to Ninja Cycles and to accounts receivable from Tiger Inc. The year-end exchange rates were $0.0113 per Japanese yen and $0.58 per Swiss franc. Record the payment of accounts payable to Ninja Cycles on January 18, 2008. Current exchange rate was $0.0116 per yen. d. Record the collection of accounts receivable from Tiger Ltd. on March 30, 2008. Current exchange rate was $0.55 per Swiss franc. c. Ps

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