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Gemella Ltd . manufactures construction equipment for sale throughout Eastern Canada and the Northeastern United States. Its year - end is June 3 0 .
Gemella Ltd manufactures construction equipment for sale throughout Eastern Canada and the Northeastern United States. Its yearend is June The following foreign currency transactions occurred during the Year calendar year: On January Gemella agreed to sell equipment to an American customer for US$ for delivery on or before March and received a deposit of US$ The balance is payable on July On March the equipment was delivered to the American customer. On May Gemella purchased acres of land in Syracuse, New York, for US$ as a longterm investment. Fifty percent of the purchase price was paid on May The balance is due on May Year along with interest at the rate of On June the acres of land had a market value of US$ Gemella reports its longterm investments in land at historical cost and discloses the market value of the land in the notes to its financial statements. On July the balance owing was received from the American customer. The following spot rates exist during the period January to July, Year : Spot Rates January Year US$ C$ March Year US$ C$ May Year US$ C$ June Year US$ C$ July Year US$ C$ Exchange rates changed evenly between the dates indicated above. Required: a Prepare the journal entries for the transactions stated above including yearend adjusting entries. Round your answers to decimal places. Omit $ sign in your response. Date General Journal Debit Credit January Year Click to select Click to select Record receipt of deposit. March Year Click to select Click to select Click to select Record the sales. May Year Click to select Click to select Click to select Record the purchase of land. June Year Click to select Click to select Record the exchange gain or loss on Accounts receivable. Click to select Click to select Record the exchange gain or loss on purchase of land. Click to select Click to select Click to select Record the interest expense. July Year Click to select Click to select Record the exchange gain or loss on Accounts receivable. Click to select Click to select Record the receipt of cash. b What value will be disclosed in the notes to the yearend financial statements pertaining to the land purchased in Syracuse? Omit $ sign in your response. Value of land disclosed in the notes to the financial statements $
Gemella Ltd manufactures construction equipment for sale throughout Eastern Canada and the Northeastern United States. Its yearend is June The following foreign currency transactions occurred during the Year calendar year:
On January Gemella agreed to sell equipment to an American customer for US$ for delivery on or before March and received a deposit of US$ The balance is payable on July
On March the equipment was delivered to the American customer.
On May Gemella purchased acres of land in Syracuse, New York, for US$ as a longterm investment. Fifty percent of the purchase price was paid on May The balance is due on May Year along with interest at the rate of
On June the acres of land had a market value of US$ Gemella reports its longterm investments in land at historical cost and discloses the market value of the land in the notes to its financial statements.
On July the balance owing was received from the American customer.
The following spot rates exist during the period January to July, Year :
Spot Rates
January Year US$ C$
March Year US$ C$
May Year US$ C$
June Year US$ C$
July Year US$ C$
Exchange rates changed evenly between the dates indicated above.
Required:
a Prepare the journal entries for the transactions stated above including yearend adjusting entries. Round your answers to decimal places. Omit $ sign in your response.
Date General Journal Debit Credit
January Year
Click to select
Click to select
Record receipt of deposit.
March Year
Click to select
Click to select
Click to select
Record the sales.
May Year
Click to select
Click to select
Click to select
Record the purchase of land.
June Year
Click to select
Click to select
Record the exchange gain or loss on Accounts receivable.
Click to select
Click to select
Record the exchange gain or loss on purchase of land.
Click to select
Click to select
Click to select
Record the interest expense.
July Year
Click to select
Click to select
Record the exchange gain or loss on Accounts receivable.
Click to select
Click to select
Record the receipt of cash.
b What value will be disclosed in the notes to the yearend financial statements pertaining to the land purchased in Syracuse? Omit $ sign in your response.
Value of land disclosed in the notes to the financial statements $
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