HH Inc. had the following transactions:

On May 1, HH purchased parts from a foreign company (FC1) for a Philippine peso equivalent value of P8,400 to be paid on June 20. The exchange rates were:

May 1 1 FC1 = P0.0070

June 20 1 FC1 = P0.0075

On July 1, HH sold products to a foreign customer for a Philippine peso equivalent of P10,000 to be received on August 10. Foreign companys local currency units is the FC2. The exchange rates were:

July 1 1 FC2 = P0.20

August 10 1 FC2 = P0.22

REQUIRED:

1.Assume that the two transactions are denominated in pesos. Prepare the entries required for the dates of the transactions and their settlement in pesos.

2.Assume that the two transactions are D nominated in the applicable local currency units of the foreign entities. Prepare the interest required for the dates of the transactions and their settlement in the local currency units of the foreign company (FC1) and foreign customer (FC2).