Question
Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2015 and 2016. 2015 -Apr. 8 Sold merchandise
Doering Company, a U.S. corporation with customers in several foreign countries, had the following selected transactions for 2015 and 2016.
2015
-Apr. 8 Sold merchandise to Salinas & Sons of Mexico for $52,415 cash. The exchange rate for pesos is $0.1040 on this day.
-July 21 Sold merchandise on credit to Sumito Corp. in Japan. The price of 2.6 million yen is to be paid 120 days from the date of sale. The exchange rate for yen is $0.0100 on this day.
-Oct. 14 Sold merchandise for 18,600 pounds to Smithers Ltd. of Great Britain, payment in full to be received in 90 days. The exchange rate for pounds is $1.5305 on this day.
-Nov. 18 Received Sumito's payment in yen for its July 21 purchase and immediately exchanged the yen for dollars. The exchange rate for yen is $0.0095 on this day.
-Dec. 20 Sold merchandise for 17,300 ringgits to Hamid Albar of Malaysia, payment in full to be received in 30 days. On this day, the exchange rate for ringgit is $0.6816. Dec. 31 Recorded adjusting entries to recognize exchange gains or losses on Doerings annual financial statements. Rates for exchanging foreign currencies on this day follow.
-Pesos (Mexico) $ 0.1052
-Yen (Japan) 0.0099
-Pounds (Britain) 1.5359
-Ringgits (Malaysia) 0.6771
2016
-Jan. 12 Received full payment in pounds from Smithers for the October 14 sale and immediately exchanged the pounds for dollars. The exchange rate for pounds is $1.5438 on this day.
-Jan. 19 Received Hamid Albar's full payment in ringgits for the December 20 sale and immediately exchanged the ringgits for dollars. The exchange rate for ringgits is $0.6735 on this day.
1. Prepare journal entries for the Doering transactions and adjusting entries. (If no entry is required select No journal entry required in the first entry field. Do not round your intermediate calculations. Enter your answers in whole dollars.)
Date: General entry: Debit: Credit:
2. Compute the foreign exchange gain or loss to be reported on Doerings 2015 income statement. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Losses should be indicated by a minus sign.)
November 18: ?
December 31: ?
December 31: ?
Total: ?
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