Harris Inc. had the following transactions: 1. On May 1, Harris purchased parts from a Japanese company for a U.S. dollar equivalent value of $8,400 to be paid on June 20. The exchange rates were

May 1	1 yen	=		$	0.0070
June 20	1 yen	=			0.0075

2. On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,000, to be received on August 10. Brazils local currency unit is the real. The exchange rates were

July 1	1 real	=		$	0.20
August 10	1 real	=			0.22

Required: a. Assume that the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the foreign purchase denominated in U.S. Dollars.

• 2

  Record the settlement of the payables.

• 3

  Record the foreign sale dominated in U.S. dollars.

• 4

  Record the collection of the receivable.

b. Assume that the two transactions are denominated in the applicable local currency units of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the local currency units of the Japanese company (yen) and the Brazilian customer (real). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the foreign purchase denominated in Japanese yen.

• 2

  Record the revaluation of the foreign currency payable to the U.S. dollar equivalent value.

• 3

  Record the purchase of Japanese yen to settle the account payable at the June 20 spot rate.

• 4

  Record the settlement of the payable denominated in Japanese yen.

• 5

  Record the foreign sales denominated in Brazilian reals.

• 6

• Record the revaluation of foreign currency payable to the U.S. dollar equivalent value.

• 7

• Record the receipt of Brazilian reals in the settlement of the receivables.