Question
On July 1, Speedy Enterprises, a U.S. company, purchased goods on account from a European company for a U.S. equivalent of $19,500 to be paid
On July 1, Speedy Enterprises, a U.S. company, purchased goods on account from a European company for a U.S. equivalent of $19,500 to be paid on December 8th. The exchange rates on July 1 and December 8 are as follows:
July 1: 1 Euro = $1.144 U.S.
December 8: 1 Euro = $1.183 U.S.
A. Prepare the journal entries to record the purchase and the payment if the two transactions are denominated in US dollars.
B. Prepare the journal entries to record the purchase and the payment if the two transactions are denominated in the local currency units.
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Advanced Financial Accounting
Authors: Theodore Christensen, David Cottrell, Cassy Budd
13th Edition
1260772136, 9781260772135
