hv aste ab Wrap Text Merge & cer Calibri (Body) 11 A A BI U A A Ax & fx B C D E F BE SURE TO ANSWER ALL PARTS FOR QUESTIONS 1a and 1b. A G H I J la, For each of the following situations, select the best answer concerning accounting for foreign currency transactions: KG) Results in a foreign exchange gain. KL) Results in a foreign exchange loss. (N) No foreign exchange gain or loss. Transaction Export sale Import purchase Type of Exposure Asset Liability Foreign Currency Appreciates Depreciates Gain Loss Loss Gain FOR 10. POST THE APPROPRIATE ANSWER (G), (L) or (N) AS PER ABOVE FOR EACH ITEM BELOW l through vill. Answer: Import purchase by a U.S. company denominated in dollars, foreign currency of buyer deprecia II. Export sale by a U.S. company denominated in foreign currency, foreign currency of buyer appr ill. Export sale by a U.S. company denominated in dollars, foreign currency of buyer appreciates. iv. Import purchase by a U.S. company denominated in dollars, foreign currency of buyer apprecia v. Export sale by a U.S. company denominated in foreign currency, foreign currency of buyer depre v. Import purchase by a U.S. company denominated in foreign currency, foreign currency of buyer vil Export sale by a U.S. company denominated in dollars, foreign currency of buyer depreciates. Vill. Import purchase by a U.S. company denominated in foreign strancy, foreign currency of buyer 1b. Fresh Produce Company sold inventory to a Japanese grocery company on December 18, 2018 2,000,000 payment in yen () was due on January 18, 2019 from the Japanese company. Relevant exchange rates between the Japanese yen and U.S. dollar were as follows: Exchange Rate Date 1 Yen = US $ December 18, 2018 0.0088 December 31, 2018 0.0092 January 18, 2019 $ 0.0091 X = == Wrap Merge Paste Calibri (Body) 11 A A BI Uvova. Av & fx B C D E 5 x A F G H I 1b. Fresh Produce Company sold inventory to a Japanese grocery company on December 18, 2018. A 2,000,000 payment in yen () was due on January 18, 2019 from the Japanese company. Relevant exchange rates between the Japanese yen and U.S. dollar were as follows: Exchange Rate Date 1 Yen = US $ December 18, 2018 0.0088 December 31, 2018 0.0092 January 18, 2019 0.0091 Answer all the questions below regarding this foreign currency transaction. SHOW ALL WORK IN SUPPORT OF YOUR ANSWER FOR 1B. ANSWER EACH QUESTION I., I., ill., iv. BELOW: What journal entry does Fresh Produce company prepare to record the sale of inventory? II. As of December 31, 2018 compute any foreign exchange gain or loss on this transaction. HII. On January 18, 2019 payment is received on this transaction. Record the journal entry that would be made to recognize the payment received including any foreign exchange gain or loss. B C D E F G H I iv. What was the total foreign exchange gain or loss, if any, that Fresh Produce Company realized on this transaction