Question
On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 3,900,000 yen. The exchange rate
On November 12, Higgins, Inc., a U.S. Company, sold merchandise on credit to Kagome of Japan at a price of 3,900,000 yen. The exchange rate was $0.00861 on the date of sale. On December 31, when Higgins prepared its financial statements, the exchange rate was $0.00867. Kagome paid in full on January 12, when the exchange rate was $0.00885. On January 12, Higgins should prepare the following journal entry:
A company had net income of $44,000, net sales of $440,000, and average total assets of $340,000. Its profit margin and total asset turnover were respectively:
1.97%; 1.29
10.00%; 0.13
10.00%; 1.29
1.29%; 0.13
1.29%; 10.00
o Debit Cash $33,813; credit Accounts Receivable-Kagome $33,579; credit Foreign Exchange Gain $234. Debit Cash $33,579; debit Foreign Exchange Loss $234; credit Accounts Receivable-Kagome $33,813. oooo Debit Cash $33,579; debit Foreign Exchange Loss $936; credit Accounts Receivable-Kagome $34,515. Debit cash Debit Cash $34,515; credit Accounts Receivable-Kagome $33,579; credit Foreign Exchange Gain $936. Debit Cash $34,515; credit Accounts Receivable-Kagome $33,813; credit Foreign Exchange Gain $702Step by Step Solution
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