Ex9.1

IMPEXP Co., a Canadian company, received inventory from a U.S. supplier and was invoiced for US$200,000 on December 18, 2016. IMPEXP paid the account on January 15, 2017. IMPEXP's year end is December 31. Relevant exchange rates are as follows: December 18, 2016 US$1.00 = C$1.10 December 31, 2016 US$1.00 = C$1.13 January 15, 2017 US$1.00 = C$1.12 Required: a) Prepare the journal entry to record the purchase of the inventory.5n6 b) Prepare the journal entry for any adjustments required at year end

Ex9.2

Imptex Co., a Canadian company, received inventory from a U.S. supplier and was invoiced for US$150,000 on December 28, 2016. IMPEXP paid the account on January 30, 2017. IMPEXP's year end is December 31. Relevant exchange rates are as follows: December 28, 2016 US$1.00 = C$1.12 December 31, 2016 US$1.00 = C$1.15 January 30, 2017 US$1.00 = C$1.14 Required: a) Prepare the journal entry to record the purchase of the inventory. b) Prepare the journal entry for any adjustments required at year end

Ex9.3

ForEx Inc, purchased an inventory from an overseas supplier and was invoiced for US$750,000 on December 02, 2018. IMPEXP paid the account on February 19, 2019. IMPEXP's year end is December 31. Relevant exchange rates are as follows: December 02, 2018 US$1.00 = C$1.30 December 31, 2018 US$1.00 = C$1.28 February 19, 2019 US$1.00 = C$1.27 Required: a) Prepare the journal entry to record the purchase of the inventory. b) Prepare the journal entry for any adjustments required at year end

Ex9.4

On March 1, 2018, Jones Inc., a Canadian publicly traded company, ordered some used equipment from a company in Germany for 100,000. The equipment's useful life is five years, and it is depreciated using the straight-line method with a residual value of $20,000. The equipment was delivered on April 1, 2018, and the invoice called for payment to be made on June 30, 2018. On April 1, 20X8, Jones entered into a forward contract with a bank to hedge the accounts payable by agreeing to buy 100,000 on June 30, 2018, at an exchange rate of 1 = C$1.79. On June 30, 2018, Jones settled the forward contract and paid the supplier. Jones has a June 30 year end. Spot rates were as follows: April 1, 2018 1 = C$1.70 June 30, 2018 1 = C$1.75 Assuming that this is Jones' only foreign currency transaction during the year, what is the total foreign exchange loss/gain recognized on the statement of comprehensive income for the year ended June 30, 2018?

Ex9.5

On January 1, 20X6, Bold Inc., a Canadian company, borrowed 100,000,000 from a Japanese bank. Interest is payable at 10% on December 31 each year, which coincides with Stephanie's year end. The exchange rate information is as follows: January 1, 2016 1 = C$0.0110 December 31, 2016 1 = C$0.0095 Average for 2016 1 = C$0.0100 January 1, 2017 1 = C$0.0095 December 31, 2017 1 = C$0.0120Average for 2017 1 = C$0.0117 Required: a) Prepare the journal entry to record the receipt of the loan proceeds on January 1,2016. b) Prepare the journal entry to record the accrual and payment of interest on December 31, 2016. c) Prepare the journal entry for any adjustments required at the December 31, 2016, year end d) Prepare the journal entry to record the accrual and payment of interest on December 31, 2017. e) Prepare the journal entry for any adjustments required at the December 31, 2017, year end

Ex9.6

On January 1, 2018, Stephanie Inc., a Canadian company, borrowed 5,000,000 from a Japanese bank. Interest is payable at 8% on December 31 each year, which coincides with Stephanie's year end. The exchange rate information is as follows: January 1, 2018 1 = C$0.0112 December 31, 2018 1 = C$0.0098 Average for 2018 1 = C$0.0105 January 1, 2019 1 = C$0.0096 December 31, 2019 1 = C$0.0125 Average for 2019 1 = C$0.0119 Required: a) Prepare the journal entry to record the receipt of the loan proceeds on January 1, 2018. b) Prepare the journal entry to record the accrual and payment of interest on December 31, 2018. c) Prepare the journal entry for any adjustments required at the December 31, 2018, year end d) Prepare the journal entry to record the accrual and payment of interest on December 31, 2019. e) Prepare the journal entry for any adjustments required at the December 31, 2019, year end

Ex9.7

Crosswinds Corp., a Canadian company operating in Canada, paid US$150,000 to acquire machinery from a U.S. equipment manufacturer on January 1, 20X6, when the exchange rate was S$1.00 = C$1.20. The equipment was estimated to last five years with no residual value. Crosswinds' year end is December 31 and it depreciates all equipment on a straight-line basis. Exchange rates were as follows: Average exchange rate during 2016 US$1.00 = C$1.21 Closing rate at December 31, 2016 US$1.00 = C$1.22 Assume Crosswinds' functional currency is the Canadian dollar a) Prepare the journal entry to record the acquisition of the equipment on January 1, 20X6. b) Prepare all necessary adjusting entries for the year ended December 31, 20X6.

Ex9.8

IMPEXP Co., a Canadian company, received inventory from a U.S. supplier and was invoiced for US$200,000 on December 18, 2016. IMPEXP paid the account on January 15, 2017. IMPEXP's year end is December 31. Relevant exchange rates are as follows: December 18, 2016 US$1.00 = C$1.10 December 31, 2016 US$1.00 = C$1.13 January 15, 2017 US$1.00 = C$1.12 Required: a) Prepare the journal entry to record payment of the accounts payable

Ex9.9

XYZ, a Canadian-based company, sells goods in the United Kingdom. XYZ invoiced a U.K. customer 85,000 on December 15, 2011. The invoice was paid on January 7, 2012. XYZ's year end is December 31. The exchange rates were as follows: December 15, 2011 1 = C$1.75 December 31, 2011 1 = C$1.80 January 7, 2012 1 = C$1.78 Required: Prepare journal entries to record the sale, any adjustments required at the yearend (December 31, 2011) and the payment of the invoice on January 7.