Exercise 12-2 During December of the current year, Teletex Systems, Inc., a company based in Seattle, Washington, entered into the following transactions: Dec. 10 Sold seven office computers to a company located in Colombia for 8,398,000 pesos. On this date, the spot rate was 340 pesos per U.S. dollar. 12 Purchased computer chips from a company domiciled in Taiwan. The contract was denominated in 410,000 Taiwan dollars. The direct exchange spot rate on this date was $0.0422. (a) Your answer is partially correct. Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic Inventory system. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 1 Dec. 10 9 Cash 24700 Sales 24700 Dec. 12 Purchases 17302 Cash 17302 (b) Prepare journal entries necessary to adjust the accounts as of December 31. Assume that on December 31 the direct exchange rates were as follows: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 5,125.) Colombia peso Talwan dollar $0.00285 $0.0382 Account Titles and Explanation Credit Date Dec. 31 (To adjust accounts receivable) (To adjust accounts payable) List of Accounts Exercise 12-2 Accounts Payable Accounts Receivable Cash Cost of Goods Sold Dollars Payable to Exchange Dealer Dollars Receivable from Exchange Dealer Equipment FC Contract FC Payable to Exchange Dealer FC Receivable from Exchange Dealer Firm Commitment Foreign Exchange Contract Foreign Exchange Gain Foreign Exchange Gain - Other Comprehensive Income Foreign Exchange Loss Foreign Exchange Loss - Other Comprehensive Income Interest Expense Inventory Investment in FC No Entry Notes Payable Option to Buy FC Option to Sell Francs Option to Sell Kronas Purchases Realized Gain Realized Loss Revenues Sales Service Revenue Transaction Gain Transaction Loss u! jus ACO