On December 1, 20x9, Petra Corporation, ordered equipment FOB shipping point from an American

Company for US $10,000. The equipment was shipped and invoiced to Petra on December 16, 20x9. Petra

paid the invoice on January 15, 20y0. Relevant spot rates for US dollars on the respective dates are as

follows:

Buying

Spot Rate

Selling Spot

Rate

December 1, 20x9 December 16, 20x9 December 31, 20x9 January 15, 20y0P 48.50 P 49.00 48.90 50.00 49.50 51.00 50.00 50.50

Required:

1. Prepare all entries on Petra Corporation's books to record the above transactions.

2. Determine the following:

a. Foreign exchange gain or loss on:

a.1. December 16, 20x9

a.2. December 31, 209x9

a.3. January 15, 20y0

b. On December 31, 20x9:

b.1. Accounts payable

b.2. Equipment

Conrada Exports Corporation, sold merchandise - metal crafts to a Canadian Corporation for a 10,000

Canadian dollars. Pertinent information on exchange conversion rates related to this transaction were as

follows:

Buying

Spot Rate

Selling Spot

Rate

November 16, 20x9 - receipt of order December 16, 20x9 - date of shipment December 31, 20x9 - balance sheet date January 15, 20y0- date of collection P 51.50 P 52.00 52.50 53.0053.50 53.75 53.00 54.00Required:

1. Prepare all entries on Petra Corporation's books to record the above transactions.

2. Determine the following:

a. Foreign exchange gain or loss on:

a.1. December 16, 20x9

a.2. December 31, 20x9

a.3. January 15, 20y0

b. On December 31, 20x9:

b.1. Accounts receivable

b.2. Sales