Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 650,000 francs.
5 Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $180,000.
18 Sold merchandise to TNT, Ltd., a British firm, for 130,000 pounds.
20 Purchased merchandise from SDS, Ltd., a British firm, for $170,000.
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.
Amount
Accounts Receivable
SLS, Inc. (denominated in $) $

TNT, Ltd.

Accounts Payable
AGT

SDS, Ltd. (denominated in $) $

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 650,000 francs. 5 Sold merchandise to SLS, Inc., a firm located in Rio De Janeiro, for $180,000. 18 Sold merchandise to TNT, Ltd., a British firm, for 130,000 pounds. 20 Purchased merchandise from SDS, Ltd., a British firm, for $170,000. All the transactions were unsettled at December 31, Agentel's fiscal year-end. Spot rates are as follows: Date November 6 November 15 November 18 November 20 December 31 Franc $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 sheet prepared at December 31. Amount Accounts Receivable SLS, Inc. (denominated in $) TNT, Ltd. Accounts Payable AGT SDS, Ltd. (denominated in s) LINK TO TEXT Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER (b) The parts of this question must be completed in order. This part will be available when you complete the part above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Costing

Authors: Terry Lucey

5th Edition

1858051657, 9781858051659

More Books

Students also viewed these Accounting questions

Question

9. Make an ogive using five classes.

Answered: 1 week ago

Question

What is quality of work life ?

Answered: 1 week ago

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago

Question

To realize business outcomes before and after HRM adoption.

Answered: 1 week ago