Exercise 12-6

Agentel Corporation is a U.S.-based importing-exporting company. The company entered into the following transactions during the month of November.

Nov.		6		Purchased merchandise from AGT, a Swiss firm, for 590,000 francs.
		5		Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $190,000.
		18		Sold merchandise to TNT, Ltd., a British firm, for 130,000 pounds.
		20		Purchased merchandise from SDS, Ltd., a British firm, for $150,000.

All the transactions were unsettled at December 31, Agentels fiscal year-end. Spot rates are as follows:

				Currency
Date		Franc		Real		Pound
November 6		$0.490		$0.412		$1.520
November 15		0.487		0.409		1.509
November 18		0.476		0.414		1.506
November 20		0.468		0.405		1.498
December 31		0.460		0.398		1.482

(a)

Compute the amount that Agentel would report for each unsettled receivable and payable in its balance sheet prepared at December 31.

(b)

Compute the transaction gain or loss on each unsettled receivable and payable that would be reported in the income statement prepared for the year ended December 31.

JRCES Exercise 12-6 Agentel Corporation is a U.S.-based importing-exporting company. The company entered into the follo ers Nov. 6 5 Purchased merchandise from AGT, a Swiss firm, for 590,000 francs. Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $190,000. Sold merchandise to TNT, Ltd., a British firm, for 130,000 pounds. Purchased merchandise from SDS, Ltd., a British firm, for $150,000. 18 20 All the transactions were unsettled at December 31, Agentel's fiscal year-end. Spot rates are as follow Franc Study Date November 6 November 15 November 18 November 20 December 31 $0.490 0.487 0.476 0.468 0.460 Currency Real Pound $0.412 $1.520 0.409 1.509 0.414 1.506 0.405 1.498 0.398 1.482 (a) Compute the amount that Agentel would report for each unsettled receivable and payable in its balance Amount Accounts Receivable SLS, Inc. (denominated in s) S TNT, Ltd. Accounts Payable AGT SDS, Ltd. (denominated in s) $ LINK TO TEXT (6) The parts of this question must be completed in order. This part will be available when you complete the pa