Journal Entries-Exporting Transactions L?? GAF manufactures electrical cells at its St. Louis facility. The company's fisral year-end is September 30. It has adopted the perpetual inventory cost flow method to control inventory costs. The company entered inta the following transactions during the monlh of September. All exchange rates are direct quolations PROBLEM 12-1 Dote 2014 Sept. Bifling Amount Rate of Exchange $1.1291 1.6821 1450 5 Exported 10 olectriral colls to a company located in Argentina. Cast per unit, S950. Received raw materials ordered trom a British company. The goods were shipped FOB destination and had not been recorded on the books or GAK Inc. 14 Exported 12 electrical cells to a company domiciled in Norway. Cost per unit, S970. 30 End ol tiscal year-end. 7,341 pesos 12,200 Pounds 1GO,274 Krane Peso British pound Krone 1.1091 1.6911 1530 Date Transuction Bifling Amoun Rute of Exchange 1.1190 1.5948 1440 Oct. 5 Received full payme or the 10 units sold on September 5. Pald British company in full for raw materlals purchased September 9. Receied full payment for 12 units sold on Scptember 14. Required: A. Prepare the journal entrles requtred on the books of GAF to record the transactions and year-end adjustments. Round al computations to the nearest dollar B. Based on the two exporting transactions listed above, complete the following table. ransection Sept. 5 SepL 14 September 30, 2014, year-end: 1. Sales 2. Transartiongain loss) September 30, 2015, year-end: 3. Salos 4. Transaction gain (loss) 5. Net effect on income for both years (Sum lines 1-4) 6. Casl received on setlement date Journal Entries-Exporting Transactions L?? GAF manufactures electrical cells at its St. Louis facility. The company's fisral year-end is September 30. It has adopted the perpetual inventory cost flow method to control inventory costs. The company entered inta the following transactions during the monlh of September. All exchange rates are direct quolations PROBLEM 12-1 Dote 2014 Sept. Bifling Amount Rate of Exchange $1.1291 1.6821 1450 5 Exported 10 olectriral colls to a company located in Argentina. Cast per unit, S950. Received raw materials ordered trom a British company. The goods were shipped FOB destination and had not been recorded on the books or GAK Inc. 14 Exported 12 electrical cells to a company domiciled in Norway. Cost per unit, S970. 30 End ol tiscal year-end. 7,341 pesos 12,200 Pounds 1GO,274 Krane Peso British pound Krone 1.1091 1.6911 1530 Date Transuction Bifling Amoun Rute of Exchange 1.1190 1.5948 1440 Oct. 5 Received full payme or the 10 units sold on September 5. Pald British company in full for raw materlals purchased September 9. Receied full payment for 12 units sold on Scptember 14. Required: A. Prepare the journal entrles requtred on the books of GAF to record the transactions and year-end adjustments. Round al computations to the nearest dollar B. Based on the two exporting transactions listed above, complete the following table. ransection Sept. 5 SepL 14 September 30, 2014, year-end: 1. Sales 2. Transartiongain loss) September 30, 2015, year-end: 3. Salos 4. Transaction gain (loss) 5. Net effect on income for both years (Sum lines 1-4) 6. Casl received on setlement date
