Exercise 11-6 (Static) Transactions with Foreign Companies LO 11-2 Harris Incorporated had the following transactions: 1. On May 1, Harris purchased parts from a Japanese company for a U.S. dollar-equivalent value of $8,400 to be paid on June 20. The exchange rates were May 1 June 20 1 yen = $0.0070 1 yen = 0.0075 2. On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,000, to be received on August 10. Brazil's local currency unit is the real. The exchange rates were July 1 August 10 Required: 1 real $0.20 1 real = 0.22 a. Assume that the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars. b. Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUS of the Japanese company (yen) and the Brazilian customer (real). a. Assume that the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars. b. Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUS of the Japanese company (yen) and the Brazilian customer (real). Complete this question by entering your answers in the tabs below. Debit Credit 8,400 8,400 Required A Required B Assume that the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars. No 1 Date May 01 General Journal Inventory (or Purchases) Accounts payable 2 June 20 Accounts payable Cash 3 July 01 >> 4 August 10 Accounts payable Accounts receivable > > Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUs of the Japanese company (yen) and the Brazilian customer (real). 1 No Date May 01 General Journal Debit Credit 2 June 20 3 June 20 5 July 01 4 June 20 6 7 August 10 August 10