Global Motors is a U.S. corporation that purchases automobiles from European manufacturers for distribution in the United States. A recent purchase involved the following events:

Nov.	12		Purchased automobiles from Stockholm Motors in Swedish kronor for Sk20,000,000, payable in 60 days. Current exchange rate, $0.1286 per krona. (Global uses the perpetual inventory system.)
Dec.	31		Made year-end adjusting entry relating to the Sk20,000,000 account payable to Stockholm Motors. Current exchange rate, $0.1288 per krona.
Jan.	11		Issued a check to World Bank for $2,566,800 in full payment of the account payable to Stockholm Motors.

Required:

a. Prepare in general journal form the entries necessary to record the preceding events.

b. Compute the exchange rate (price) of the krona in U.S. dollars on January 11.

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